ACUSHNET HOLDINGS CORP., 10-K filed on 2/28/2019
Annual Report
v3.10.0.1
Document and Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2018
Feb. 22, 2019
Jun. 30, 2018
Document And Entity Information [Abstract]      
Entity Registrant Name Acushnet Holdings Corp.    
Entity Central Index Key 0001672013    
Current Fiscal Year End Date --12-31    
Entity Filer Category Large Accelerated Filer    
Document Type 10-K    
Document Period End Date Dec. 31, 2018    
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Emerging Growth Company false    
Entity Small Business false    
Entity Common Stock, Shares Outstanding   75,029,111  
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Shell Company false    
Entity Public Float     $ 827.3
v3.10.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Current assets    
Cash and restricted cash ($8,436 and $13,086 attributable to the variable interest entity (VIE)) $ 31,014 $ 47,722
Accounts receivable, net 186,114 190,851
Inventories ($9,658 and $13,692 attributable to the VIE) 361,207 363,962
Other assets 85,666 84,541
Total current assets 664,001 687,076
Property, plant and equipment, net ($11,615 and $10,240 attributable to the VIE) 228,388 228,922
Goodwill ($32,312 and $32,312 attributable to the VIE) 209,671 203,403
Intangible assets, net 478,257 481,234
Deferred income taxes 78,028 99,437
Other assets ($2,593 and $2,738 attributable to the VIE) 33,276 33,833
Total assets 1,691,621 1,733,905
Current liabilities    
Short-term debt 920 20,364
Current portion of long-term debt 35,625 26,719
Accounts payable ($6,882 and $10,587 attributable to the VIE) 86,045 92,759
Accrued taxes 38,268 34,310
Accrued compensation and benefits ($1,634 and $780 attributable to the VIE) 77,181 80,189
Accrued expenses and other liabilities ($3,462 and $2,719 attributable to the VIE) 56,828 52,442
Total current liabilities 294,867 306,783
Long-term debt and capital lease obligations 346,953 416,970
Deferred income taxes 4,635 9,318
Accrued pension and other postretirement benefits ($794 and $1,908 attributable to the VIE) 102,077 130,160
Other noncurrent liabilities ($4,831 and $4,689 attributable to the VIE) 16,105 16,701
Total liabilities 764,637 879,932
Commitments and contingencies (Note 23)
Shareholders' equity    
Common stock, $0.001 par value, 500,000,000 shares authorized; 74,760,062 and 74,479,319 shares issued and outstanding 75 74
Additional paid-in capital 910,890 894,727
Accumulated other comprehensive loss, net of tax (89,039) (81,691)
Retained earnings 72,946 8,199
Total equity attributable to Acushnet Holdings Corp. 894,872 821,309
Noncontrolling interests 32,112 32,664
Total shareholders' equity 926,984 853,973
Total liabilities and shareholders' equity $ 1,691,621 $ 1,733,905
v3.10.0.1
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Cash and restricted cash $ 31,014 $ 47,722
Inventories 361,207 363,962
Property, plant and equipment, net 228,388 228,922
Goodwill 209,671 203,403
Other assets 33,276 33,833
Accounts payable 86,045 92,759
Accrued compensation and benefits 77,181 80,189
Accrued expenses and other liabilities 56,828 52,442
Accrued pension and other postretirement benefits 102,077 130,160
Other noncurrent liabilities $ 16,105 $ 16,701
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 74,760,062 74,479,319
Common stock, shares outstanding (in shares) 74,760,062 74,479,319
VIE    
Cash and restricted cash $ 8,436 $ 13,086
Inventories 9,658 13,692
Property, plant and equipment, net 11,615 10,240
Goodwill 32,312 32,312
Other assets 2,593 2,738
Accounts payable 6,882 10,587
Accrued compensation and benefits 1,634 780
Accrued expenses and other liabilities 3,462 2,719
Accrued pension and other postretirement benefits 794 1,908
Other noncurrent liabilities $ 4,831 $ 4,689
v3.10.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Statement [Abstract]      
Net sales $ 1,633,721 $ 1,560,258 $ 1,572,275
Cost of goods sold 791,370 758,401 773,275
Gross profit 842,351 801,857 799,000
Operating expenses:      
Selling, general and administrative 611,883 578,289 600,092
Research and development 51,489 47,241 48,126
Intangible amortization 6,644 6,499 6,608
Restructuring charges 0 0 1,673
Income from operations 172,335 169,828 142,501
Interest expense, net (Note 19) 18,402 15,709 49,908
Other expense, net 3,629 2,443 3,371
Income before income taxes 150,304 151,676 89,222
Income tax expense 47,232 48,475 39,707
Net income 103,072 103,201 49,515
Less: Net income attributable to noncontrolling interests (3,200) (4,506) (4,503)
Net income attributable to Acushnet Holdings Corp. 99,872 98,695 45,012
Dividends earned by preferred shareholders 0 0 (11,576)
Allocation of undistributed earnings to preferred shareholders 0 0 (10,247)
Net income attributable to common shareholders - basic 99,872 98,695 23,189
Adjustments to net income for dilutive securities 0 0 16,475
Net income attributable to common shareholders - diluted $ 99,872 $ 98,695 $ 39,664
Net income per common share attributable to Acushnet Holdings Corp.:      
Basic (in dollars per share) $ 1.34 $ 1.33 $ 0.74
Diluted (in dollars per share) 1.32 1.32 0.62
Cash dividends declared per common share (in dollars per share) $ 0.52 $ 0.48 $ 0.00
Weighted average number of common shares:      
Basic (in shares) 74,766,176 74,399,836 31,247,643
Diluted (in shares) 75,472,342 74,590,999 64,323,742
v3.10.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Statement of Comprehensive Income [Abstract]      
Net income $ 103,072 $ 103,201 $ 49,515
Other comprehensive income (loss)      
Foreign currency translation adjustments (11,971) 26,964 (14,656)
Cash flow derivative instruments      
Unrealized holding gains (losses) arising during period 6,222 (15,558) 7,014
Reclassification adjustments included in net income 1,886 (1,329) (5,194)
Tax benefit (expense) (1,668) 4,072 (451)
Cash flow derivative instruments, net 6,440 (12,815) 1,369
Available-for-sale securities      
Unrealized holding gains arising during period 0 150 51
Tax benefit (expense) 0 35 (19)
Available-for-sale securities, net 0 185 32
Pension and other postretirement benefits      
Pension and other postretirement benefits adjustments 5,690 (6,889) (16,072)
Tax benefit (expense) (1,375) 1,698 5,727
Pension and other postretirement benefits adjustments, net 4,315 (5,191) (10,345)
Total other comprehensive income (loss) (1,216) 9,143 (23,600)
Comprehensive income 101,856 112,344 25,915
Less: Comprehensive income attributable to noncontrolling interests (3,114) (4,524) (4,563)
Comprehensive income attributable to Acushnet Holdings Corp. $ 98,742 $ 107,820 $ 21,352
v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Cash flows from operating activities      
Net income $ 103,072 $ 103,201 $ 49,515
Adjustments to reconcile net income to cash provided by (used in) operating activities      
Depreciation and amortization 40,496 40,871 40,834
Unrealized foreign exchange (gain) loss 3,960 (4,028) (2,347)
Amortization of debt issuance costs 1,409 1,321 3,378
Amortization of discount on bonds payable 0 0 3,963
Change in fair value of common stock warrants 0 0 6,112
Share-based compensation 18,563 15,285 14,494
Loss on disposals of property, plant and equipment 128 912 170
Deferred income taxes 15,541 21,272 7,849
Changes in operating assets and liabilities      
Accounts receivable 571 (2,592) 12,630
Inventories 805 (28,372) (2,377)
Accounts payable (5,789) 974 1,968
Accrued taxes 4,311 (10,283) 14,666
Other assets and liabilities (19,334) (165,598) (34,016)
Interest due to related parties 0 0 (12,570)
Cash flows provided by (used in) operating activities 163,733 (27,037) 104,269
Cash flows from investing activities      
Additions to property, plant and equipment (32,801) (18,845) (19,175)
Business acquisitions, net of cash acquired (16,902) 0 0
Cash flows used in investing activities (49,703) (18,845) (19,175)
Cash flows from financing activities      
Proceeds (repayment) of short-term borrowings, net (17,742) (25,548)  
Proceeds (repayment) of short-term borrowings, net     747
Proceeds from delayed draw term loan A facility 0 100,000 0
Repayment of delayed draw term loan A facility (40,625) (5,000) 0
Repayment of term loan A facility (21,094) (18,750) (4,688)
Proceeds from term loan A facility 0 0 375,000
Repayment of senior term loan facility 0 0 (30,000)
Repayment of secured floating rate notes 0 0 (375,000)
Proceeds from exercise of common stock warrants 0 0 34,503
Repayment of bonds 0 0 (34,503)
Debt issuance costs (381) 0 (6,606)
Dividends paid on common stock (39,057) (35,744) 0
Dividends paid on Series A redeemable convertible preferred stock 0 0 (17,316)
Dividends paid to noncontrolling interests (7,350) (4,800) (4,800)
Payment of employee restricted stock tax withholdings (2,634) (903) 0
Cash flows provided by (used in) financing activities (128,883) 9,255 (62,663)
Effect of foreign exchange rate changes on cash (1,855) 5,209 (2,425)
Net increase (decrease) in cash (16,708) (31,418) 20,006
Cash and restricted cash, beginning of year 47,722 79,140 59,134
Cash and restricted cash, end of year 31,014 47,722 79,140
Supplemental information      
Cash paid for interest to related parties 0 0 36,753
Cash paid for interest to third parties 18,344 15,488 27,165
Cash paid for income taxes 27,389 35,949 16,589
Non-cash additions to property, plant and equipment 2,568 2,876 1,170
Dividend equivalents rights (DERs) declared not paid 882 801 0
Non-cash conversion of Series A redeemable convertible preferred stock 0 0 131,036
Non-cash conversion of convertible notes 0 0 362,489
Non-cash conversion of common stock warrants $ 0 $ 0 $ 28,996
v3.10.0.1
CONSOLIDATED STATEMENTS OF REEDEMABLE CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY - USD ($)
shares in Thousands
Total
Total Shareholders' Equity Attributable to Acushnet Holdings Corp.
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss
Retained Earnings (Deficit)
Noncontrolling Interests
Beginning balance at Dec. 31, 2015 $ 193,506,000 $ 160,251,000 $ 22,000 $ 309,110,000 $ (67,234,000) $ (81,647,000) $ 33,255,000
Beginning balance (in shares) at Dec. 31, 2015     21,821        
Changes in stockholders' equity              
Net income 49,515,000 45,012,000       45,012,000 4,503,000
Other comprehensive income (loss) (23,600,000) (23,600,000)     (23,600,000)    
Share-based compensation 14,494,000 14,494,000   14,494,000      
Issuance of common stock 63,499,000 63,499,000 $ 3,000 63,496,000      
Issuance of common stock (in shares)     3,105        
Conversion of redeemable convertible preferred stock 131,036,000 131,036,000 $ 16,000 131,020,000      
Conversion of redeemable convertible preferred stock (in shares)     16,542        
Conversion of convertible notes 362,489,000 362,489,000 $ 33,000 362,456,000      
Conversion of convertible notes (in shares)     32,626        
Dividends paid on Series A redeemable convertible preferred stock (17,316,000) (17,316,000)       (17,316,000)  
Dividends and dividend equivalents declared 0            
Dividends declared to noncontrolling interests (4,800,000)           (4,800,000)
Ending balance at Dec. 31, 2016 768,823,000 735,865,000 $ 74,000 880,576,000 (90,834,000) (53,951,000) 32,958,000
Ending balance (in shares) at Dec. 31, 2016     74,094        
Beginning balance at Dec. 31, 2015 $ 131,036,000            
Beginning balance (in shares) at Dec. 31, 2015 1,838            
Redeemable Convertible Preferred Stock              
Conversion of redeemable convertible preferred stock $ (131,036,000)            
Conversion of redeemable convertible preferred stock (in shares) (1,838)            
Ending balance at Dec. 31, 2016 $ 0            
Ending balance (in shares) at Dec. 31, 2016 0            
Changes in stockholders' equity              
Net income $ 103,201,000 98,695,000       98,695,000 4,506,000
Other comprehensive income (loss) 9,143,000 9,143,000     9,143,000    
Share-based compensation 15,054,000 15,054,000   15,054,000      
Conversion of convertible notes 0            
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 17) (903,000) (903,000)   (903,000)      
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 17) (in shares)     385        
Dividends and dividend equivalents declared (36,545,000) (36,545,000)       (36,545,000)  
Dividends declared to noncontrolling interests (4,800,000)           (4,800,000)
Ending balance at Dec. 31, 2017 853,973,000 821,309,000 $ 74,000 894,727,000 (81,691,000) 8,199,000 32,664,000
Ending balance (in shares) at Dec. 31, 2017     74,479        
Ending balance at Dec. 31, 2017 $ 0            
Ending balance (in shares) at Dec. 31, 2017 0            
Changes in stockholders' equity              
Acquisitions (Note 22) $ 3,598,000           3,598,000
Net income 103,072,000 99,872,000       99,872,000 3,200,000
Other comprehensive income (loss) (1,216,000) (1,216,000)     (1,216,000)    
Share-based compensation 18,794,000 18,794,000   18,794,000      
Conversion of convertible notes 0            
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 17) (2,630,000) (2,630,000) $ 1,000 (2,631,000)      
Vesting of restricted common stock, including impact of DERs, net of shares withheld for employee taxes (Note 17) (in shares)     281        
Dividends and dividend equivalents declared (39,756,000) (39,756,000)       (39,756,000)  
Dividends declared to noncontrolling interests (7,350,000)           (7,350,000)
Ending balance at Dec. 31, 2018 926,984,000 $ 894,872,000 $ 75,000 $ 910,890,000 $ (89,039,000) $ 72,946,000 $ 32,112,000
Ending balance (in shares) at Dec. 31, 2018     74,760        
Ending balance at Dec. 31, 2018 $ 0            
Ending balance (in shares) at Dec. 31, 2018 0            
v3.10.0.1
Description of Business
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business
Description of Business
Acushnet Holdings Corp. (the “Company”), headquartered in Fairhaven, Massachusetts, is the global leader in the design, development, manufacture and distribution of performance-driven golf products. The Company has established positions across all major golf equipment and golf wear categories under its globally recognized brands of Titleist, FootJoy, Scotty Cameron and Vokey Design. Acushnet products are sold primarily to on-course golf pro shops and selected off-course golf specialty stores, sporting goods stores and other qualified retailers. The Company sells products primarily in the United States, Europe (primarily the United Kingdom, Germany, France and Sweden), Asia (primarily Japan, Korea, China and Singapore), Canada and Australia. Acushnet manufactures and sources its products principally in the United States, China, Thailand, the United Kingdom and Japan.
Acushnet Holdings Corp. was incorporated in Delaware on May 9, 2011 as Alexandria Holdings Corp., an entity owned by Fila Korea Co., Ltd. (“Fila Korea”), a leading sport and leisure apparel and footwear company which is a public company listed on the Korea Exchange, and a consortium of investors (the “Financial Investors”). Acushnet Holdings Corp. acquired Acushnet Company, its operating subsidiary, from Beam Suntory, Inc. (at the time known as Fortune Brands, Inc.) (“Beam”) on July 29, 2011.
On November 2, 2016, the Company completed an initial public offering of 19,333,333 shares of its common stock sold by selling stockholders at a public offering price of $17.00 per share. Upon the closing of the Company’s initial public offering, all remaining outstanding shares of the Company’s Series A redeemable convertible preferred stock (“Series A preferred stock”) were automatically converted into 11,556,495 shares of the Company’s common stock and the Company’s 7.5% convertible notes due 2021 (“convertible notes”) were automatically converted into 22,791,852 shares of the Company’s common stock. The underwriters of the Company’s initial public offering exercised their over-allotment option to purchase an additional 2,899,999 shares of common stock from the selling stockholders at the initial public offering price of $17.00 per share.
Following the pricing of the initial public offering, Magnus Holdings Co., Ltd. (“Magnus”), a wholly-owned subsidiary of Fila Korea, purchased from the Financial Investors on a pro rata basis 14,818,720 shares of the Company’s common stock, resulting in Magnus holding a controlling ownership interest in the Company’s outstanding common stock. The 14,818,720 shares of the Company’s common stock sold by the Financial Investors were received upon the automatic conversion of certain of the Company’s outstanding convertible notes (Note 10) and Series A preferred stock (Note 15). The remaining outstanding convertible notes and Series A preferred stock automatically converted into shares of the Company’s common stock prior to the closing of the initial public offering. 
On October 14, 2016, the Company effected a nine-for-one stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for its convertible notes, Series A preferred stock, and the exercise price for the common stock warrants and the strike price of stock-based compensation. Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split and adjustment of the common stock warrant exercise price, and convertible notes and redeemable convertible preferred stock conversion ratios.
v3.10.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company, its wholly- owned subsidiaries and less than wholly-owned subsidiaries, including a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to current year presentation.
Revision of Previously Issued Financial Statements
During the fourth quarter of 2018, the Company determined that in 2011 it did not record a required deferred income tax liability on the difference between the book and tax basis of intangible assets resulting from the 2011 acquisition of Acushnet Company. This deferred tax liability should have been remeasured during the fourth quarter of 2017 based upon the change in tax rates resulting from the U.S. Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”). The Company has corrected these errors as a revision to the previously issued financial statements. The correction of these errors resulted in a decrease in income tax expense of $6.6 million, an increase in net income of $6.6 million, an increase in comprehensive income of $6.6 million and an increase in both basic and diluted net income per common share of $0.09 for the year ended December 31, 2017. The correction also resulted in a decrease in deferred income tax assets of $10.9 million, an increase in goodwill of $17.5 million, an increase in total assets of $6.6 million and an increase in total shareholders' equity of $6.6 million as of December 31, 2017. The errors also resulted in a decrease in deferred income tax assets of $17.5 million and an increase in goodwill of $17.5 million as of December 31, 2016, which has been revised in the related footnotes. The impact of this revision has been reflected throughout these financial statements, including the related footnotes, and is not material to the consolidated financial statements for the year ended December 31, 2017.
Use of Estimates
The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities in its consolidated financial statements. Actual results could differ from those estimates.
Variable Interest Entities
VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE.
The Company consolidates the accounts of Acushnet Lionscore Limited, a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of December 31, 2018 and 2017. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.
Noncontrolling Interests
The ownership interest held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The value attributable to the noncontrolling interests is presented on the consolidated balance sheets within shareholders' equity, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the consolidated statements of operations and consolidated statements of comprehensive income, respectively. The Company's less than wholly-owned subsidiaries include a VIE, as discussed above, and PG Professional Golf which was acquired on October 1, 2018 (Note 22).
Cash and Restricted Cash
Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable. As of December 31, 2018 and 2017, book overdrafts in the amount of $2.2 million and $2.9 million, respectively, were recorded in accounts payable. The Company classifies as restricted certain cash that is not available for use in its operations. As of December 31, 2018 and 2017, the amount of restricted cash included in cash and restricted cash on the consolidated balance sheet was $2.0 million and $2.3 million, respectively.
Concentration of Credit Risk and of Significant Customers
Financial instruments that potentially expose the Company to concentration of credit risk are cash and accounts receivable. Substantially all of the Company's cash deposits are maintained at large, creditworthy financial institutions. The Company's deposits, at times, may exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As part of its ongoing procedures, the Company monitors its concentration of deposits with various financial institutions in order to avoid any undue exposure. As of December 31, 2018 and 2017, the Company had $28.6 million and $44.7 million, respectively, in banks located outside the United States. The risk with respect to the Company's accounts receivable is managed by the Company through its policy of monitoring the creditworthiness of its customers to which it grants credit terms in the normal course of business.
Inventories
Inventories are valued at the lower of cost and net realizable value. Cost is determined using the first-in, first-out inventory method. The inventory balance, which includes material, labor and manufacturing overhead costs, is recorded net of an allowance for obsolete or slow moving inventory. The Company's allowance for obsolete or slow moving inventory contains estimates regarding uncertainties. Such estimates are updated each reporting period and require the Company to make assumptions and to apply judgment regarding a number of factors, including market conditions, selling environment, historical results and current inventory trends. See Note 5 for additional information.
Property, Plant and Equipment
Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Gains or losses resulting from disposals are included in income from operations. Betterments and renewals, which improve and extend the life of an asset, are capitalized. Maintenance and repair costs are expensed as incurred.
Estimated useful lives of property, plant and equipment asset categories were as follows:
Buildings and improvements
15
-
40 years
Machinery and equipment
3
-
10 years
Furniture, fixtures and computer hardware
3
-
10 years
Computer software
1
-
10 years
 
Leasehold and tenant improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets.
Certain costs incurred in connection with the development of the Company's internal-use software are capitalized. Internal-use software development costs are primarily related to the Company's enterprise resource planning system. Costs incurred in the preliminary stages of development are expensed as incurred. Internal and external costs incurred in the application development phase, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. Costs such as maintenance and training are expensed as incurred. The capitalized internal-use software costs are included in property, plant and equipment and once the software is placed into service are amortized over the estimated useful life which ranges from three to ten years. See Note 6 for additional information.
Long-Lived Assets
A long-lived asset (including amortizing intangible assets) or asset group is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the asset or asset group. The cash flows are based on the best estimate of future cash flows derived from the most recent business projections. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset's or asset group's carrying value over its fair value. Fair value is determined based on discounted expected future cash flows on a market participant basis. Any impairment charge would be recognized within operating expenses as a selling, general and administrative expense.
The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets may warrant revision or that the remaining balance may not be recoverable. These factors may include a significant deterioration of operating results, changes in business plans, or changes in anticipated cash flows.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized but instead are measured for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying amount of the asset may be impaired.
Goodwill is assigned to reporting units for purposes of impairment testing. A reporting unit may be the same as an operating segment or one level below an operating segment. For purposes of assessing potential impairment, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company records goodwill impairment in the amount of the excess of a reporting unit’s carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The fair value of the reporting units is determined using the income approach. The income approach uses a discounted cash flow analysis which involves applying appropriate discount rates to estimated future cash flows based on forecasts of sales, costs and capital requirements.
Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. Certain of the Company's trademarks have been assigned an indefinite life as the Company currently anticipates that these trademarks will contribute to its cash flows indefinitely. Indefinite-lived trademarks are reviewed for impairment annually and may be reviewed more frequently if indicators of impairment are present. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trademarks using the relief-from-royalty method, which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. See Note 7 for additional information.
The Company performs its annual impairment tests in the fourth quarter of each fiscal year. During the years ended December 31, 2018, 2017 and 2016, no impairment charges were recorded to goodwill or indefinite-lived intangible assets.
Deferred Financing Costs
The Company defers costs directly associated with acquiring third-party financing. These deferred costs are amortized as interest expense over the term of the related indebtedness. Deferred financing costs associated with the revolving credit facilities are included in other current and noncurrent assets and deferred financing costs associated with all other indebtedness are netted against long-term debt and capital lease obligations on the consolidated balance sheet. See Note 10 for additional information.
Fair Value Measurements
Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
Level 1—Quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.
The Company’s derivative instrument assets and liabilities are carried at fair value determined according to the fair value hierarchy described above (Note 11 and 12). The carrying value of accounts receivable, accounts payable and accrued expenses approximates fair value due to the short-term nature of these assets and liabilities. The Company adopted the fair value measurement disclosures for nonfinancial assets and liabilities, such as goodwill and indefinite-lived intangible assets.
In some instances where a market price is available, but the instrument is in an inactive or over-the-counter market, the Company consistently applies the dealer (market maker) pricing estimate and uses a midpoint approach on bid and ask prices from financial institutions to determine the reasonableness of these estimates. Assets and liabilities subject to this fair value valuation approach are typically classified as Level 2. See Note 12 for additional information.
Pension and Other Postretirement Benefit Plans
The Company provides U.S. and foreign defined benefit and defined contribution plans to certain eligible employees and postretirement benefits to certain retirees, including pensions, postretirement healthcare benefits and other postretirement benefits.
Plan assets and obligations are measured using various actuarial assumptions, such as discount rates, rate of compensation increase, mortality rates, turnover rates and health care cost trend rates, as determined at each year end measurement date. The measurement of net periodic benefit cost is based on various actuarial assumptions, including discount rates, expected return on plan assets and rate of compensation increase, which are determined as of the prior year measurement date. The determination of the discount rate is generally based on an index created from a hypothetical bond portfolio consisting of high-quality fixed income securities with durations that match the timing of expected benefit payments. The expected return on plan assets is determined based on several factors, including adjusted historical returns, historical risk premiums for various asset classes and target asset allocations within the portfolio. Adjustments made to the historical returns are based on recent return experience in the equity and fixed income markets and the belief that deviations from historical returns are likely over the relevant investment horizon. Actual cost is also dependent on various other factors related to the employees covered by these plans. The effects of actuarial deviations from assumptions are generally accumulated and, if over a specified corridor, amortized over the remaining service period of the employees. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. The Company's actuarial assumptions are reviewed on an annual basis and modified when appropriate.
To calculate the U.S. pension and postretirement benefit plan expense in 2018 and 2017, the Company applied the individual spot rates along the yield curve that correspond with the timing of each future cash outflow for the benefit payments in order to calculate interest cost and service cost.  Prior to 2017, the service cost and interest cost components were determined using a single weighted-average discount rate. The change does not affect the measurement of the total benefit plan obligations, as the change in the service cost and interest cost offsets in the actuarial gains and losses recorded in other comprehensive income (loss). The Company changed to the new method to provide a more precise measure of service and interest cost by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company accounted for this change as a change in estimate prospectively beginning in 2017.  See Note 13 for additional information.
Income Taxes
The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between consolidated financial statement carrying amounts and tax basis amounts at enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred income tax assets when it is more-likely-than-not that such assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies.
The Company records liabilities for uncertain income tax positions based on the two step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances, and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of income.
Beam has indemnified certain tax obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company (Note 23). These estimated tax obligations are recorded in accrued taxes and other noncurrent liabilities, and the related indemnification receivable is recorded in other noncurrent assets on the consolidated balance sheet. Any changes in the value of these specifically identified tax obligations are recorded in the period identified in income tax expense and the related change in the indemnification asset is recorded in other expense, net on the consolidated statement of operations. See Note 14 for additional information.
On December 22, 2017, the U.S. enacted the 2017 Tax Act. The 2017 Tax Act contains a new law that subjects the Company to a tax on Global Intangible Low-Taxed Income (“GILTI”), beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of related foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences, including outside basis differences, expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost.
Cost of Goods Sold
Cost of goods sold includes all costs to make products salable, such as inbound freight, purchasing and receiving costs, inspection costs and transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them salable is included in cost of goods sold.
Product Warranty
The Company has defined warranties ranging from one to two years. Products covered by the defined warranty policies include all Titleist golf products, FootJoy golf shoes, and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims, and the cost to replace or repair products under warranty. See Note 8 for additional information.
Advertising and Promotion
Advertising and promotional costs are included in selling, general and administrative expense on the consolidated statement of operations and include product endorsement arrangements with members of the various professional golf tours, media placement and production costs (television, print and internet), tour support expenses and point-of-sale materials. Advertising production costs are expensed as incurred. Media placement costs are expensed in the month the advertising first appears. Product endorsement arrangements are expensed based upon the specific provisions of player contracts. Advertising and promotional expense was $192.2 million, $192.7 million and $196.0 million for the years ended December 31, 2018, 2017 and 2016, respectively.
Selling
Selling expenses including field sales, sales administration and shipping and handling costs are included in selling, general and administrative expense on the consolidated statement of operations. Shipping and handling costs included in selling expenses were $34.1 million, $32.5 million and $32.4 million for the years ended December 31, 2018, 2017 and 2016, respectively.
Research and Development
Research and development expenses include product development, product improvement, product engineering, and process improvement costs and are expensed as incurred.
Foreign Currency Translation and Transactions
Assets and liabilities denominated in foreign currency are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Revenues and expenses are translated at the average rates of exchange for the reporting period. The related translation adjustments are recorded as a component of accumulated other comprehensive loss. Transactions denominated in a currency other than the functional currency are re-measured into functional currency with resulting transaction gains or losses recorded as selling, general and administrative expense on the consolidated statement of operations. Foreign currency transaction gain (loss) included in selling, general and administrative expense was a loss of $1.9 million, a gain of $4.1 million and a gain of $1.2 million for the years ended December 31, 2018, 2017 and 2016, respectively.
Derivative Financial Instruments
All derivative instruments are recognized as either assets or liabilities on the consolidated balance sheet and are measured at fair value. If the derivative instrument is designated as a fair value hedge, the changes in the fair value of the derivative instruments and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and are recognized in the consolidated statement of operations when the hedged item affects earnings. Any portion of the change in fair value that is determined to be ineffective is immediately recognized in earnings. Cash flows from derivative financial instruments and the related hedged transactions are included in cash flows from operating activities. See Note 11 for additional information.
Share-based Compensation
The Company has a share-based compensation plan for board of directors, officers, employees, consultants and advisors of the Company. All awards granted under the plan are measured at fair value at the date of the grant. The Company issues share-based awards with service-based vesting conditions and performance-based vesting conditions. Awards with service-based vesting conditions are amortized as expense over the requisite service period of the award, which is generally the vesting period of the respective award. For awards with performance-based vesting conditions, the measurement of the expense is based on the Company’s level of achievement of performance metrics as defined in the applicable award agreements. The Company accounts for forfeitures in compensation expense when they occur. See Note 17 for additional information.
Net Income per Common Share
Net income per common share attributable to Acushnet Holdings Corp. is calculated under the treasury stock method. Prior to the conversion of the redeemable convertible preferred shares to common stock in connection with the Company’s initial public offering in 2016, the Company applied the two-class method to calculate its basic and diluted net income per common share attributable to Acushnet Holdings Corp., as its redeemable convertible preferred shares were participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. Net income per common share available to Acushnet Holdings Corp. was determined by allocating undistributed earnings between holders of common shares and redeemable convertible preferred shares, based on the participation rights of the preferred shares. Basic net income per common share attributable to Acushnet Holdings Corp. was computed by dividing the net income available to Acushnet Holdings Corp. by the basic weighted-average number of common shares outstanding during the period. Diluted net income per common share attributable to Acushnet Holdings Corp. was computed by dividing the net income available to Acushnet Holdings Corp. after giving effect to the diluted securities by the weighted-average number of dilutive shares outstanding during the period. See Note 20 for additional information.
Recently Adopted Accounting Standards
Revenue from Contracts with Customers
On January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" ("ASC 606") and all the related amendments (the “new revenue standard”) using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to opening retained earnings (Note 3). The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
Income Statement—Reporting Comprehensive Income
On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2018‑02, “Income Statement—Reporting Comprehensive Income (Topic 220) —Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” As a result of the adoption of the amendments in this update, the Company recorded a reclassification from accumulated other comprehensive loss, net of tax to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (Note 14). The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
Financial Instruments—Recognition and Measurement
On January 1, 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 supersedes the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and requires equity securities to be measured at fair value with changes in the fair value recognized through net income, among other items (Note 18). As a result of the adoption of the amendments in this update, the Company recorded a reclassification of unrealized gains of $2.1 million from accumulated other comprehensive loss, net of tax to retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
Compensation—Retirement Benefits
On January 1, 2018, the Company adopted ASU 2017‑07, “Compensation—Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” ("ASU 2017-07"). ASU 2017‑07 requires that an employer report the service cost component of net periodic pension and net periodic post retirement cost in the same line item as other compensation costs arising from services rendered by the employees during the period. It also requires the other components of net periodic pension and net periodic postretirement benefit cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component is eligible for capitalization. As a result of the adoption of the amendments in this update, the Company recorded a reclassification of the non-service cost component of net periodic benefit cost of $3.5 million and $1.7 million from cost of goods sold and operating expenses to other expense, net on the consolidated statement of operations for the years ended December 31, 2017 and 2016, respectively (Notes 13 and 19). The adoption of this standard also resulted in the restatement of the Company's segment operating income for the years ended December 31, 2017 and 2016 (Note 21) and unaudited quarterly financial data for the quarter ended December 31, 2017 (Note 24).
Intangibles—Goodwill and OtherSimplifying the Test for Goodwill Impairment
On October 31, 2018, the Company adopted ASU 2017‑04, “Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment” ("ASU 2017-04"). ASU 2017‑04 removes the second step of the goodwill impairment test. Instead an entity will perform a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The adoption of this standard did not have an impact on the Company's assessment of goodwill impairment or its consolidated financial statements.
The Company also adopted the following standards during 2018, none of which had a material impact to the Company's financial statements or financial statement disclosures:
Standard
 
 
 
Effective Date
ASU 2017‑09
 
Compensation—Stock Compensation: Scope of Modification Accounting
 
January 1, 2018
ASU 2017‑01
 
Business Combinations: Clarifying the Definition of a Business
 
January 1, 2018
ASU 2016‑16
 
Income Taxes: Intra-Entity Transfers of Assets other than Inventory
 
January 1, 2018
ASU 2016‑15
 
Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments
 
January 1, 2018

Recently Issued Accounting Standards
Intangibles —Goodwill and Other —Internal-Use Software
In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-15, "Intangibles —Goodwill and Other —Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ("ASU 2018-15"). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for fiscal years ending after December 15, 2019. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
Defined Benefit Plans—Changes to the Disclosure Requirements for Defined Benefit Plans
In August 2018, the FASB issued ASU 2018-14, "Compensation —Retirement Benefits —Defined Benefit Plans —General (Subtopic 715-20) —Disclosure Framework —Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14"). The amendments in this update remove defined benefit plan disclosures that are no longer considered cost-beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The adoption of this standard should be applied to all periods presented. The adoption of this standard will not have a material impact on the consolidated financial statements.
Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820) —Disclosure Framework —Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in this update improve the effectiveness of fair value measurement disclosures. ASU 2018-13 is effective for fiscal years ending after December 15, 2019. Early adoption is permitted. The adoption of this standard should be applied to all periods presented. The adoption of this standard will not have a material impact on the consolidated financial statements.
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
In August 2017, the FASB issued ASU 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” ("ASU 2017-12"). The amendments in this update expand and refine hedge accounting guidance and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 also simplifies the application of hedge accounting guidance, hedge documentation requirements and the assessment of hedge effectiveness. ASU 2017‑12 is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued or made available for issuance. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
Leases
In February 2016, the FASB issued ASU 2016‑02, “Leases,” which will require lessees to recognize right-of-use assets and lease liabilities for leases which were formerly classified as operating leases. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU 2018-11, "Leases (Topic 842): Targeted Improvements", which provides an optional approach to initially apply the new lease guidance upon the adoption date, without adjusting the comparative periods presented. The Company adopted ASU 2016-02 on January 1, 2019, using the optional transition approach which allows for a cumulative effect adjustment in the period of adoption and will not restate prior periods. Although the Company is continuing to assess the potential impact this ASU will have on its consolidated balance sheet and related disclosures, it expects the adoption of this standard to result in the recognition of right-of-use assets and lease liabilities in the range of $40.0 million and $50.0 million. The Company does not expect a material impact to its consolidated statements of operations or cash flows.
v3.10.0.1
Revenue
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Revenue
Revenue
On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605, "Revenue Recognition".
The Company recorded a net reduction to opening retained earnings of $1.6 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to a promotional holiday program. The impact of applying ASC 606 was an increase in net sales of $4.3 million and an increase in cost of sales of $2.3 million for the year ended December 31, 2018. Additionally, the Company reclassified the refund liability for expected returns from accounts receivable, net to accrued expenses and other liabilities and reclassified the value of inventory expected to be recovered related to sales returns from inventories to other assets as of December 31, 2018. The refund liability for expected returns was $9.8 million and $13.5 million as of December 31, 2018 and 2017, respectively. The value of inventory expected to be recovered related to sales returns was $5.7 million and $4.3 million as of December 31, 2018 and 2017, respectively. The adoption of ASC 606 did not have any other material impacts to the financial statements.
Accounting Policies
Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company's contracts have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when control of the products has been transferred to the customer, generally at the time of shipment or delivery of products, based on the terms of the contract and the jurisdiction of the sale. Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for the products. Revenue is recognized net of allowances for discounts and sales returns. Sales taxes and other similar taxes are excluded from revenue.
Substantially all of the Company’s revenue is recognized at a point in time and relates to customers who are not engaged in a long-term supply agreement or any form of contract with the Company. Substantially all of sales are paid for on account with the majority of terms between 30 and 60 days, not to exceed one year.
Costs associated with shipping and handling activities, such as merchandising, are included in selling, general and administrative expenses as revenue is recognized. The Company has made an accounting policy election to account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of assessing such activities as performance obligations.
The Company reduces revenue by the amount of expected returns and records a corresponding refund liability in accrued expenses and other liabilities. The Company accounts for the right of return as variable consideration and recognizes a refund liability for the amount of consideration that it estimates will be refunded to customers. In addition, the Company recognizes an asset for the right to recover returned products in other assets on the consolidated balance sheets. Sales returns are estimated based upon historical rates of product returns, current economic trends and changes in customer demands as well as specific identification of outstanding returns.
Contract Balances
Accounts receivable, net, include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance includes amounts for certain customers where a risk of default has been specifically identified as well as a provision for customer defaults when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including credit risk assessments, length of time the receivables are past due, historical experience, customer specific information available to the Company and existing economic conditions.
Customer Sales Incentives
The Company offers sales-based incentive programs to certain customers in exchange for certain benefits, including prominent product placement and exclusive stocking by participating retailers. These programs typically provide qualifying customers with rebates for achieving certain purchase goals. The rebates can be settled in the form of cash or credits or in the form of free product. The rebates which are expected to be settled in the form of cash or credits are accounted for as variable consideration. The estimate of the variable consideration requires the use of assumptions related to the percentage of customers who will achieve qualifying purchase goals and the level of achievement. These assumptions are based on historical experience, current year program design, current marketplace conditions and sales forecasts, including considerations of the Company's product life cycles.
The rebates which are expected to be settled in the form of product are estimated based upon historical experience and the terms of the customer programs and are accounted for as an additional performance obligation. Revenue will be recognized when control of the free products earned transfers to the customer at the end of the related customer incentive program, which generally occurs within one year. Control of the free products generally transfers to the customer at the time of shipment.
Practical Expedients and Exemptions
The Company expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling, general and administrative expense on the consolidated statements of operations.
The Company has elected the practical expedient to not disclose information about remaining performance obligations that have original expected durations of one year or less.
Disaggregated Revenue
In general, the Company's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment's results of operations. See Note 21 for the Company's business segment disclosures, as well as a further disaggregation of net sales by geographical area.
v3.10.0.1
Allowance for Doubtful Accounts
12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts
The activity related to the allowance for doubtful accounts was as follows:
(in thousands)
2018
 
2017
 
2016
Balance at beginning of year
$
9,975

 
$
12,255

 
$
12,363

Bad debt expense
(583
)
 
337

 
6,507

Amount of receivables written off
(1,873
)
 
(3,300
)
 
(6,315
)
Foreign currency translation
(247
)
 
683

 
(300
)
Balance at end of year
$
7,272

 
$
9,975

 
$
12,255


On September 14, 2016 Golfsmith International Holdings LP, one of the Company’s largest customers in the year ended December 31, 2016, announced that its U.S.‑based business, Golfsmith International Holdings, Inc., ("Golfsmith") commenced a Chapter 11 case under Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware, and its Canada‑based business, Golf Town Canada Inc. ("Golf Town"), commenced creditor protection proceedings under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). The Company’s outstanding receivable related to Golfsmith and Golf Town was reserved for in full by the time of the bankruptcy filing and as of December 31, 2016 the portion related to Golfsmith had been written off.
v3.10.0.1
Inventories
12 Months Ended
Dec. 31, 2018
Inventory Disclosure [Abstract]  
Inventories
Inventories
The components of inventories were as follows:
(in thousands)
December 31,
2018
 
December 31,
2017
Raw materials and supplies
$
71,068

 
$
72,342

Work-in-process
21,763

 
23,956

Finished goods
268,376

 
267,664

Inventories
$
361,207

 
$
363,962

v3.10.0.1
Property, Plant and Equipment, Net
12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net
The components of property, plant and equipment, net were as follows:
(in thousands)
December 31,
2018
 
December 31,
2017
Land
$
14,515

 
$
14,618

Buildings and improvements
142,113

 
138,570

Machinery and equipment
160,707

 
148,999

Furniture, computers and equipment
36,405

 
32,783

Computer software
62,517

 
60,736

Construction in progress
19,999

 
13,586

Property, plant and equipment, gross
436,256

 
409,292

Accumulated depreciation and amortization
(207,868
)
 
(180,370
)
Property, plant and equipment, net
$
228,388

 
$
228,922


During the years ended December 31, 2018, 2017 and 2016, software development costs of $4.1 million, $3.1 million and $8.2 million were capitalized. Capitalized software development costs as of December 31, 2018, 2017 and 2016 consisted of software placed into service of $1.7 million, $2.4 million and $7.4 million, respectively, and amounts recorded in construction in progress of $2.4 million, $0.7 million and $0.8 million, respectively. Amortization expense on capitalized software development costs was $6.3 million, $6.4 million and $5.8 million for the years ended December 31, 2018, 2017 and 2016, respectively.
Total depreciation and amortization expense related to property, plant and equipment was $32.2 million, $31.6 million and $31.5 million for the years ended December 31, 2018, 2017 and 2016, respectively.
v3.10.0.1
Goodwill and Identifiable Intangible Assets, Net
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identifiable Intangible Assets, Net
Goodwill and Identifiable Intangible Assets, Net
Goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill were as follows:
(in thousands)
Titleist
Golf Balls
 
Titleist
Golf Clubs
 
Titleist
Golf Gear
 
FootJoy
Golf Wear
 
Other
 
Total
Balances at December 31, 2016
$
115,693

 
$
56,187

 
$
13,624

 
$
2,500

 
$
8,699

 
$
196,703

Foreign currency translation
3,941

 
1,914

 
464

 
85

 
296

 
6,700

Balances at December 31, 2017
119,634

 
58,101

 
14,088

 
2,585

 
8,995

 
203,403

Acquisitions (Note 22)
8,492

 

 

 
1,071

 

 
9,563

Foreign currency translation
(1,931
)
 
(949
)
 
(222
)
 
(43
)
 
(150
)
 
(3,295
)
Balances at December 31, 2018
$
126,195

 
$
57,152

 
$
13,866

 
$
3,613

 
$
8,845

 
$
209,671

 
Prior year information within the above table has been revised, see further discussion of the impact of these revisions included in Note 2 - Revision of Previously Issued Financial Statements.
The net carrying value by class of identifiable intangible assets was as follows:
 
Weighted
Average
Useful
Life (Years)
 
December 31, 2018
 
December 31, 2017
(in thousands)
 
Gross
 
Accumulated
Amortization
 
Net Book
Value
 
Gross
 
Accumulated
Amortization
 
Net Book
Value
Indefinite-lived:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
N/A
 
$
429,051

 
$

 
$
429,051

 
$
428,100

 
$

 
$
428,100

Amortizing:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
8
 
1,600

 
(50
)
 
1,550

 

 

 

Completed technology
13
 
73,900

 
(41,017
)
 
32,883

 
73,900

 
(35,486
)
 
38,414

Customer relationships
17
 
22,023

 
(7,250
)
 
14,773

 
19,666

 
(6,309
)
 
13,357

Licensing fees and other
11
 
32,384

 
(32,384
)
 

 
32,539

 
(31,176
)
 
1,363

Total intangible assets
 
 
$
558,958

 
$
(80,701
)
 
$
478,257

 
$
554,205

 
$
(72,971
)
 
$
481,234


As a result of acquisitions completed during the year ended December 31, 2018, the Company recorded additions to identifiable intangible assets including indefinite-lived trademarks, amortizing trademarks and customer relationships of $1.0 million, $1.6 million and $2.7 million, respectively (Note 22). The Company expects to amortize the acquired amortizing trademarks and customer relationships over an eight year period.
During the years ended December 31, 2018, 2017 and 2016, no impairment charges were recorded to goodwill or indefinite-lived intangible assets.
Identifiable intangible asset amortization expense was $8.0 million, $9.3 million and $9.3 million for the years ended December 31, 2018, 2017 and 2016, respectively, of which $1.4 million, $2.7 million and $2.7 million associated with certain licensing fees was included in cost of goods sold for the years ended December 31, 2018, 2017 and 2016, respectively.
Identifiable intangible asset amortization expense for each of the next five fiscal years and beyond is expected to be as follows:
(in thousands)
 
Year ending December 31,
 
2019
$
6,789

2020
6,446

2021
6,446

2022
6,446

2023
6,446

Thereafter
16,633

Total
$
49,206

v3.10.0.1
Product Warranty
12 Months Ended
Dec. 31, 2018
Product Warranties Disclosures [Abstract]  
Product Warranty
Product Warranty
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Balance at beginning of period
$
3,823

 
$
3,526

 
$
3,345

Provision
5,909

 
5,801

 
6,200

Claims paid/costs incurred
(6,315
)
 
(5,653
)
 
(5,940
)
Foreign currency translation
(86
)
 
149

 
(79
)
Balance at end of period
$
3,331

 
$
3,823

 
$
3,526

v3.10.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
Other current assets includes receivables from related parties of $0.5 million as of December 31, 2017. Prior to its initial public offering, the Company incurred interest expense payable to related parties on its outstanding convertible notes (Note 10) and bonds with common stock warrants (Note 11). The related party interest expense totaled $28.1 million for the year ended December 31, 2016.
v3.10.0.1
Debt and Financing Arrangements
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Debt and Financing Arrangements
Debt and Financing Arrangements
The Company’s debt and long-term capital lease obligations were as follows:
(in thousands)
December 31,
2018
 
December 31,
2017
Term loan A facility
$
330,469

 
$
351,563

Delayed draw term loan A facility
54,375

 
95,000

Revolving credit facility

 
10,066

Other short-term borrowings
920

 
10,298

Capital lease obligations

 
22

Debt issuance costs
(2,266
)
 
(2,896
)
Total
383,498

 
464,053

Less: short-term debt and current portion of long-term debt
36,545

 
47,083

Total long-term debt and capital lease obligations
$
346,953

 
$
416,970


The debt issuance costs of $2.3 million and $2.9 million as of December 31, 2018 and 2017, respectively, relate to the term loan A facility and delayed draw term loan A facility.
Senior Secured Credit Facility
On April 27, 2016, the Company entered into a senior secured credit facilities agreement arranged by Wells Fargo Bank, National Association which provided for (i) a $275.0 million multi‑currency revolving credit facility, initially including a $20.0 million letter of credit sublimit, a $25.0 million swing line sublimit, a C$25.0 million sublimit for Acushnet Canada, Inc., a £20.0 million sublimit for Acushnet Europe Limited and an alternative currency sublimit of $100.0 million for borrowings in Canadian dollars, euros, pounds sterling and Japanese yen (“revolving credit facility”), (ii) a $375.0 million term loan A facility and (iii) a $100.0 million delayed draw term loan A facility. The credit agreement allows for the incurrence of additional term loans or increases in the revolving credit facility in an aggregate principal amount not to exceed (i) $200.0 million plus (ii) an unlimited amount so long as the net average secured leverage ratio (as defined in the credit agreement) does not exceed 2.00:1.00 on a pro forma basis. On August 9, 2017, the senior secured credit facilities agreement was amended to increase the letter of credit sublimit to $25.0 million, to increase the sublimit for Acushnet Canada Inc. to C$35.0 million and to increase the sublimit for Acushnet Europe Limited to £30.0 million. The revolving credit facility and term loan facilities mature on July 28, 2021 and are secured by certain assets, including inventory, accounts receivable, fixed assets and intangible assets of the Company.
The credit agreement requires the Company to prepay outstanding term loans, subject to certain exceptions, with:
100% of the net cash proceeds of all non‑ordinary course asset sales or other dispositions of property by the Company and its restricted subsidiaries (including insurance and condemnation proceeds, subject to de minimis thresholds), (1) if the Company does not reinvest those net cash proceeds in assets to be used in its business or to make certain other permitted investments, within 12 months of the receipt of such net cash proceeds or (2) if the Company commits to reinvest such net cash proceeds within 12 months of the receipt thereof, but does not reinvest such net cash proceeds within 18 months of the receipt thereof; and
100% of the net proceeds of any issuance or incurrence of debt by the Company or any of its restricted subsidiaries, other than debt permitted under the credit agreement.
The foregoing mandatory prepayments are used to reduce the installments of principal in such order: first, to prepay outstanding loans under the term loan A facility, the delayed draw term loan A facility and any incremental term loans on a pro rata basis in direct order of maturity and second, to prepay outstanding loans under the revolving credit facility.
The Company may voluntarily repay outstanding loans under the credit agreement at any time without premium or penalty, other than customary “breakage” costs with respect to Eurodollar loans. Any optional prepayment of term loans will be applied as directed by the Company.
The Company is required to make principal payments on the loans under the term loan facilities in quarterly installments in aggregate annual amounts equal to (i) 5.00% of the original principal amount for the first and second year after July 28, 2016, (ii) 7.50% of the original principal amount for the third and fourth year after July 28, 2016 and (iii) 10.0% of the original principal amount for the fifth year after July 28, 2016. The remaining outstanding amount is payable on July 28, 2021, the maturity date for the term loan facilities. Principal amounts outstanding under the revolving credit facility will be due and payable in full on July 28, 2021, the maturity date for the revolving credit facility.
The applicable interest rate for the Canadian borrowings under the senior secured credit facility is based on the Canadian Dollar Offered Rate (“CDOR”) plus a margin ranging from 1.25% to 2.00% depending on the Net Average Total Leverage Ratio as defined in the credit agreement. The applicable interest for the swing line sublimit is the highest of (a) Federal Funds Rate plus 0.50%, (b) the Prime Rate and (c) the one-month London Interbank Offered Rate (“LIBOR”) rate plus 1.00% plus a margin ranging from 0.25% to 1.00% depending on the Net Average Total Leverage Ratio as defined in the credit agreement. The applicable interest rate for all remaining borrowings under the senior secured credit facilities is LIBOR plus a margin ranging from 1.25% to 2.00% depending on the Net Average Total Leverage Ratio as defined in the credit agreement or the highest of (a) the Federal Funds Rate plus 0.50%, (b) the Prime Rate and (c) the one month LIBOR rate plus 1.00% plus a margin ranging from 0.25% to 1.00% depending on the Net Average Total Leverage Ratio as defined in the credit agreement.
Interest on borrowings under the credit agreement is payable (1) on the last day of any interest period with respect to Eurodollar borrowings with an applicable interest period of three months or less, (2) every three months with respect to Eurodollar borrowings with an interest period of greater than three months or (3) on the last business day of each March, June, September and December with respect to base rate borrowings and swing line borrowings. In addition, beginning with the date of the initial funding under the credit agreement, the Company is required to pay a commitment fee on any unutilized commitments under the revolving credit facility and the new delayed draw term loan A facility. The initial commitment fee rate is 0.30% per annum and ranges from 0.20% to 0.35% based upon a leverage‑based pricing grid. The Company is also required to pay customary letter of credit fees.
The Company’s credit agreement was signed and became effective on April 27, 2016 and initial funding under the credit agreement occurred on July 28, 2016. The proceeds of the $375.0 million term loan A facility, borrowings of C$4.0 million (equivalent to approximately $3.0 million) under the revolving credit facility and cash on hand of $23.6 million were used to repay all amounts outstanding under the secured floating rate notes and certain former working credit facilities. The secured floating rate notes, certain former working credit facilities and the former senior revolving credit facility were terminated.
During the first quarter of 2017, the Company drew down $100.0 million on the delayed draw term loan A facility and $47.8 million under the revolving credit facility to substantially fund the equity appreciation rights (“EAR") plan payout (Note 17).
The interest rate applicable to the term loan A facility and delayed draw term loan A facility as of December 31, 2018 and 2017 was 4.02% and 3.32%, respectively. The weighted average interest rate applicable to the outstanding borrowings under the revolving credit facility was 4.44% as of December 31, 2017.
A change of control is an event of default under the credit agreement which could result in the acceleration of all outstanding indebtedness and the termination of all commitments under the credit agreement and would allow the lenders under the credit agreement to enforce their rights with respect to the collateral granted. A change of control occurs if any person (other than certain permitted parties, including Fila Korea) becomes the beneficial owner of 35% or more of the outstanding common stock of the Company.  On September 22, 2017, Magnus entered into a loan agreement (the “New Magnus Loan Agreement”) with certain Korean financial institutions (the “New Magnus Lenders”) which provides for (i) three year term loans in an aggregate amount of Korean Won 399.2 billion (equivalent to approximately $358.1 million, using an exchange rate of $1.00 = Korean Won 1,114.76 as of December 31, 2018) (the “New Magnus Term Loans”) and (ii) a revolving credit loan of Korean Won 10.0 billion (equivalent to approximately $9.0 million, using an exchange rate of $1.00 = Korean Won 1,114.76 as of December 31, 2018) (the “New Magnus Revolving Loan” and, together with the New Magnus Term Loans, the “New Magnus Loans”). The New Magnus Loans are secured by a pledge on all of the Company's common stock owned by Magnus, which consists of 39,345,151 shares (the “Magnus Shares”), or 52.6% of the Company's outstanding common stock as of December 31, 2018.  Under the New Magnus Loan Agreement, Magnus is required to maintain a specified Loan-to-Value ratio (“LTV Ratio”).  If the LTV Ratio exceeds 75%, Magnus will be in breach of the New Magnus Loan agreement. If Magnus does not cure the breach in 60 days, the lenders will have a right to accelerate the maturity of the New Magnus Loan. If Magnus fails to pay the amount due on the New Magnus Loan at maturity or upon acceleration, the lenders can foreclose on the pledged shares of the Company’s common stock, which may result in the sale of up to 52.6% of the Company’s common stock as of December 31, 2018
The credit agreement contains a number of covenants that, among other things, restrict the ability of the U.S. Borrower and its restricted subsidiaries to (subject to certain exceptions), incur, assume, or permit to exist additional indebtedness or guarantees; incur liens; make investments and loans; pay dividends, make payments, or redeem or repurchase capital stock or make prepayments, repurchases or redemptions of certain indebtedness; engage in mergers, liquidations, dissolutions, asset sales, and other dispositions (including sale leaseback transactions); amend or otherwise alter terms of certain indebtedness or certain other agreements; enter into agreements limiting subsidiary distributions or containing negative pledge clauses; engage in certain transactions with affiliates; alter the nature of the business that it conducts or change its fiscal year or accounting practices. Certain exceptions to these covenants are determined based on ratios that are calculated in part using the calculation of Adjusted EBITDA. The credit agreement also restricts the ability of Acushnet Holdings Corp. to engage in certain mergers or consolidations or engage in any activities other than permitted activities. The Company’s credit agreement contains certain customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company’s leverage and interest coverage ratios. The credit agreement includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable.
On June 7, 2018, Acushnet Company, Acushnet Canada Inc. and Acushnet Europe Limited, as borrowers, and the Company and certain other subsidiaries of the Company, as guarantors, entered into an amendment with Wells Fargo Bank, National Association and certain other lenders to the Company’s senior secured credit facilities agreement. Pursuant to the amendment, the restrictive covenant governing the payment of dividends, the making of certain other payments and the redemption or repurchase of capital stock was amended to permit an additional $150.0 million of such payments, redemptions and/or repurchases, subject to certain conditions. In connection with amending the senior secured credit facilities, the Company incurred approximately $0.4 million in fees and expenses, which were recorded as debt issuance costs and will be recognized as interest expense over the term of the senior secured credit facilities.
As of December 31, 2018, the Company was in compliance with all covenants under the credit agreement.
As of December 31, 2018, the Company had available borrowings under its revolving credit facility of $263.6 million after giving effect to $11.4 million of outstanding letters of credit.
Convertible Notes
Prior to the initial public offering, the Company had outstanding convertible notes with an aggregate principal amount of $362.5 million.  All outstanding convertible notes were converted into common stock in conjunction with the Company’s initial public offering (Note 1). Upon conversion, all accrued but unpaid interest on the principal of the convertible notes was paid to each holder of the convertible notes. The Company recorded interest expense related to the convertible notes of $22.6 million during the year ended December 31, 2016
Secured Floating Rate Notes
On July 28, 2016, outstanding borrowings under the secured floating rate notes of $375.0 million were repaid in full using the proceeds from the senior secured credit facility and the secured floating rate notes were terminated.
Senior Revolving and Term Loan Facilities
As of June 30, 2016, the Company had repaid all amounts outstanding under the senior revolving and term loan facilities and the facilities were terminated.
Other Short-Term Borrowings
The Company has certain unsecured facilities available through its subsidiaries. The weighted average interest rate applicable to the outstanding borrowings was 3.25% and 0.73% as of December 31, 2018 and 2017, respectively. As of December 31, 2018, the Company had available borrowings remaining under these local credit facilities of $62.6 million.
Letters of Credit
As of December 31, 2018 and 2017, there were outstanding letters of credit related to agreements, including the Company's Senior Secured Credit Facility, totaling $15.5 million and $14.3 million, respectively, of which $12.4 million and $11.2 million was secured, respectively. These agreements provided a maximum commitment for letters of credit of $29.2 million as of both December 31, 2018 and 2017.
Payments of Debt Obligations due by Period
As of December 31, 2018, principal payments due on outstanding long-term debt obligations, excluding capital leases, were as follows:
(in thousands)
 
Year ending December 31,
 
2019
$
35,625

2020
38,594

2021
310,625

2022

2023

Thereafter

Total
$
384,844

v3.10.0.1
Derivative Financial Instruments
12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
The Company principally uses derivative financial instruments to reduce the impact of changes in foreign currency exchange rates and interest rate fluctuations. The principal derivative financial instruments the Company enters into are foreign exchange forward contracts and interest rate swaps. Additionally, prior to the exercise of the final annual call option by Fila Korea in July 2016, the Company had outstanding bonds with common stock warrants for the purchase of the Company’s common stock. The Company does not enter into derivative financial instruments contracts for trading or speculative purposes.
Foreign Exchange Derivative Instruments
Foreign exchange derivative instruments are foreign exchange forward contracts primarily used to hedge currency fluctuations for transactions denominated in a foreign currency, thereby limiting currency risk that would otherwise result from changes in exchange rates. The periods of the foreign exchange forward contracts correspond to the periods of the forecasted transactions, which do not exceed 24 months subsequent to the latest balance sheet date. The primary foreign exchange forward contracts pertain to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won and the Euro. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts designated under hedge accounting as of December 31, 2018 and 2017 was $312.8 million and $278.9 million, respectively.
The Company also enters into foreign exchange forward contracts to mitigate the change in fair value of specific assets and liabilities which do not qualify as hedging instruments under U.S. GAAP. Accordingly, these undesignated instruments are recorded at fair value as a derivative asset or liability with the corresponding change in fair value recognized in selling, general and administrative expense, together with the re-measurement gain or loss from the hedged asset or liability. There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of December 31, 2018 and 2017.
Interest Rate Derivative Instruments
During 2018, the Company entered into interest rate swap contracts to reduce the impact of variability in interest rates. Under the contracts, the Company pays fixed and receives variable rate interest, in effect converting a portion of its variable rate debt to fixed rate debt. The interest rate swap contracts are accounted for as cash flow hedges. As of December 31, 2018, the notional value of the Company's outstanding interest rate swap contracts was $185.0 million. As of December 31, 2017, there were no outstanding interest rate swap contracts.
Impact on Financial Statements
The fair value of hedge instruments recognized on the consolidated balance sheets was as follows:
(in thousands)
 
 
 
December 31,
2018
 
December 31,
2017
Balance Sheet Location
 
Hedge Instrument Type
 
 
Other current assets
 
Foreign exchange forward
 
$
6,116

 
$
4,675

Other noncurrent assets
 
Foreign exchange forward
 
1,015

 
562

Accrued expenses and other liabilities
 
Foreign exchange forward
 
578

 
6,360

 
 
Interest rate swap
 
526

 

Other noncurrent liabilities
 
Foreign exchange forward
 
161

 
276

 
 
Interest rate swap
 
925

 


The hedge instrument gain (loss) recognized in accumulated other comprehensive loss, net of tax was as follows:
 
Gain (Loss) Recognized in
Other Comprehensive Loss
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Type of hedge
 
 
 
 
 
Foreign exchange forward
$
8,148

 
$
(15,558
)
 
$
7,014

Interest rate swap
(1,926
)
 

 

 
$
6,222

 
$
(15,558
)
 
$
7,014

 
Gains and losses on derivative instruments designated as cash flow hedges are reclassified from other comprehensive income (loss) at the time the forecasted transaction impacts the income statement. Based on the current valuation, the Company expects to reclassify a net gain of $6.0 million related to foreign exchange derivative instruments from accumulated other comprehensive loss, net of tax into cost of goods sold and a net loss of $0.5 million related to interest rate derivative instruments from accumulated other comprehensive loss, net of tax into interest expense, net during the next 12 months (Note 19).
The hedge instrument gain (loss) recognized on the consolidated statements of operations was as follows:
 
Gain (Loss) Recognized in
Statement of Operations
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Location of gain (loss) in statement of operations
 
 
 
 
 
Cost of goods sold
$
(1,410
)
 
$
1,329

 
$
5,194

Selling, general and administrative expense
1,665

 
(2,732
)
 
(917
)
Interest expense, net
(476
)
 

 

 
$
(221
)
 
$
(1,403
)
 
$
4,277


Credit Risk
The Company enters into derivative contracts with major financial institutions with investment grade credit ratings and is exposed to credit losses in the event of non-performance by these financial institutions. This credit risk is generally limited to the unrealized gains in the derivative contracts. However, the Company monitors the credit quality of these financial institutions and considers the risk of counterparty default to be minimal.
Bonds with Common Stock Warrants
Prior to the exercise of the final annual call option by Fila Korea in July 2016, the Company had outstanding bonds with common stock warrants for the purchase of the Company’s common stock at an exercise price of $11.11 per share. The Company classified the warrants to purchase common stock as a liability on its consolidated balance sheet as the warrants were free‑standing financial instruments that could result in the issuance of a variable number of the Company’s common shares. The warrants were initially recorded at fair value on grant date, and were subsequently re‑measured to fair value at each reporting date. The Company categorized the common stock warrants derivative liability as Level 3 as there were significant unobservable inputs used in the underlying valuations. Changes in the fair value of the common stock warrants were recognized as other expense, net on the consolidated statement of operations (Note 19).
In July 2016, Fila Korea exercised its annual call option to purchase common stock warrants held by the holders of the bonds and exercised such warrants at the exercise price of $11.11 per share, or $34.5 million in the aggregate. The Company used the proceeds received from Fila Korea’s exercise of the common stock warrants to redeem the outstanding bonds payable.
v3.10.0.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis were as follows:
 
Fair Value Measurements as of
 
 
 
December 31, 2018 using:
 
 
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Balance Sheet Location
Assets
 
 
 
 
 
 
 
Rabbi trust
$
8,415

 
$

 
$

 
Other current assets
Foreign exchange derivative instruments

 
6,116

 

 
Other current assets
Deferred compensation program assets
1,222

 

 

 
Other noncurrent assets
Foreign exchange derivative instruments

 
1,015

 

 
Other noncurrent assets
Total assets
$
9,637

 
$
7,131

 
$

 
 
Liabilities
 
 
 
 
 
 
 
Foreign exchange derivative instruments
$

 
$
578

 
$

 
Accrued expenses and other liabilities
Interest rate swap derivative instrument

 
526

 

 
Accrued expenses and other liabilities
Deferred compensation program liabilities
1,222

 

 

 
Other noncurrent liabilities
Foreign exchange derivative instruments

 
161

 

 
Other noncurrent liabilities
Interest rate swap derivative instrument

 
925

 

 
Other noncurrent liabilities
Total liabilities
$
1,222

 
$
2,190

 
$

 
 
 
Fair Value Measurements as of
 
 
 
December 31, 2017 using:
 
 
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Balance Sheet Location
Assets
 
 
 
 
 
 
 
Rabbi trust
$
10,637

 
$

 
$

 
Other current assets
Foreign exchange derivative instruments

 
4,675

 

 
Other current assets
Deferred compensation program assets
1,866

 

 

 
Other noncurrent assets
Foreign exchange derivative instruments

 
562

 

 
Other noncurrent assets
Total assets
$
12,503

 
$
5,237

 
$

 
 
Liabilities
 
 
 
 
 
 
 
Foreign exchange derivative instruments
$

 
$
6,360

 
$

 
Accrued expenses and other liabilities
Deferred compensation program liabilities
1,866

 

 

 
Other noncurrent liabilities
Foreign exchange derivative instruments

 
276

 

 
Other noncurrent liabilities
Total liabilities
$
1,866

 
$
6,636

 
$

 
 

During the years ended December 31, 2018 and 2017, there were no transfers between Level 1, Level 2 and Level 3.
Rabbi trust assets are used to fund certain retirement obligations of the Company. The assets underlying the Rabbi trust are equity and fixed income exchange‑traded funds.
Deferred compensation program assets and liabilities represent a program where select employees can defer compensation until termination of employment. Effective July 29, 2011, this program was amended to cease all employee compensation deferrals and provided for the distribution of all previously deferred employee compensation. The program remains in effect with respect to the value attributable to the employer match contributed prior to July 29, 2011.
Foreign exchange derivative instruments are foreign exchange forward contracts primarily used to hedge currency fluctuations for transactions denominated in a foreign currency (Note 11). The Company uses the mid‑price of foreign exchange forward rates as of the close of business on the valuation date to value each foreign exchange forward contract at each reporting period.
Interest rate derivative instruments are contracts used to hedge the interest rate fluctuations of the Company's variable rate debt (Note 11). The valuation for the interest rate swap is calculated as the net of the discounted future cash flows of the pay and receive legs of the swap. Mid-market interest rates on the valuation date are used to create the forward curve for floating legs and discount curve.
v3.10.0.1
Pension and Other Postretirement Benefits
12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
The Company has various pension and post-employment plans which provide for payment of benefits to certain eligible employees, mainly commencing between the ages of 50 and 65, and for payment of certain disability benefits. After meeting certain qualifications, eligible employees acquire a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an employee's length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements are satisfied. The Company may make contributions in excess of the legal funding requirements.
The Company provides postretirement healthcare benefits to certain retirees. Many employees and retirees outside of the United States are covered by government sponsored healthcare programs.
The following table presents the change in benefit obligation, change in plan assets and funded status for the Company's defined benefit and postretirement benefit plans for the year ended December 31, 2018:
(in thousands)
Pension
Benefits
(Underfunded)
 
Pension
Benefits
(Overfunded)
 
Postretirement
Benefits
Change in projected benefit obligation ("PBO")
 
 
 
 
 
Benefit obligation at December 31, 2017
$
316,882

 
$
35,468

 
$
16,052

Service cost
9,067

 

 
657

Interest cost
11,040

 
857

 
490

Actuarial gain
(22,436
)
 
(5,255
)
 
(1,600
)
Curtailments
(177
)
 

 

Settlements
(36,244
)
 
(3,507
)
 

Plan amendments

 
285

 

Participants’ contributions

 

 
378

Benefit payments
(2,990
)
 
(580
)
 
(1,565
)
Foreign currency translation
(321
)
 
(1,639
)
 

Projected benefit obligation at December 31, 2018
274,821

 
25,629

 
14,412

Accumulated benefit obligation at December 31, 2018
240,270

 
23,821

 
14,412

Change in plan assets

 

 
 
Fair value of plan assets at December 31, 2017
183,093

 
50,767

 

Return on plan assets
(11,863
)
 
(3,846
)
 

Employer contributions
44,105

 
441

 
1,187

Participants’ contributions

 

 
378

Settlements
(36,244
)
 
(3,507
)
 

Benefit payments
(2,990
)
 
(580
)
 
(1,565
)
Foreign currency translation
(57
)
 
(2,575
)
 

Fair value of plan assets at December 31, 2018
176,044

 
40,700

 

Funded status (fair value of plan assets less PBO)
$
(98,777
)
 
$
15,071

 
$
(14,412
)
The following table presents the change in benefit obligation, change in plan assets and funded status for the Company's defined benefit and postretirement benefit plans for the year ended December 31, 2017:
(in thousands)
Pension
Benefits
(Underfunded)
 
Pension
Benefits
(Overfunded)
 
Postretirement
Benefits
Change in projected benefit obligation
 
 
 
 
 
Benefit obligation at December 31, 2016
$
284,104

 
$
39,735

 
$
20,264

Service cost
9,217

 

 
955

Interest cost
10,783

 
1,049

 
713

Actuarial (gain) loss
34,557

 
(2,000
)
 
(5,075
)
Settlements
(20,663
)
 
(5,172
)
 

Participants’ contributions

 

 
355

Benefit payments
(2,719
)
 
(635
)
 
(1,160
)
Foreign currency translation
1,435

 
2,659

 

Adjustment for movement from underfunded to overfunded
168

 
(168
)
 

Projected benefit obligation at December 31, 2017
316,882

 
35,468

 
16,052

Accumulated benefit obligation at December 31, 2017
277,067

 
34,190

 
16,052

Change in plan assets

 

 

Fair value of plan assets at December 31, 2016
161,088

 
45,342

 

Return on plan assets
23,757

 
6,254

 

Employer contributions
21,280

 
1,697

 
805

Participants’ contributions

 

 
355

Settlements
(20,663
)
 
(5,172
)
 

Benefit payments
(2,719
)
 
(635
)
 
(1,160
)
Foreign currency translation
156

 
3,475

 

Adjustment for movement from underfunded to overfunded
194

 
(194
)
 

Fair value of plan assets at December 31, 2017
183,093

 
50,767

 

Funded status (fair value of plan assets less PBO)
$
(133,789
)
 
$
15,299

 
$
(16,052
)

The amount of pension and postretirement assets and liabilities recognized on the consolidated balance sheets was as follows:
 
Pension Benefits
 
Postretirement Benefits
 
December 31, 
 
December 31, 
(in thousands)
2018
 
2017
 
2018
 
2017
Other noncurrent assets
$
15,071

 
$
15,299

 
$

 
$

Accrued compensation and benefits
(10,391
)
 
(18,933
)
 
(721
)
 
(748
)
Accrued pension and other postretirement benefits
(88,386
)
 
(114,856
)
 
(13,691
)
 
(15,304
)
Net liability recognized
$
(83,706
)
 
$
(118,490
)
 
$
(14,412
)
 
$
(16,052
)

The amounts in accumulated other comprehensive loss, net of tax on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Year ended December 31, 
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Net actuarial gain (loss) at beginning of year
$
(44,892
)
 
$
(33,736
)
 
$
(18,374
)
 
$
12,392

 
$
8,055

 
$
8,840

Actuarial gain (loss)
(882
)
 
(14,554
)
 
(18,425
)
 
1,600

 
5,075

 
573

Prior service cost
(285
)
 

 

 

 

 
(283
)
Curtailment impact
(97
)
 

 

 

 

 

Settlement impact
4,982

 
2,740

 
1,124

 

 

 

Amortization of actuarial (gain) loss
1,687

 
804

 
485

 
(1,540
)
 
(601
)
 
(912
)
Amortization of prior service cost (credit)
175

 
175

 
175

 
(137
)
 
(137
)
 
(163
)
Foreign currency translation
187

 
(321
)
 
1,279

 

 

 

Net actuarial gain (loss) at end of year
$
(39,125
)
 
$
(44,892
)
 
$
(33,736
)
 
$
12,315

 
$
12,392

 
$
8,055


The expected prior service cost (credit) that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in the next fiscal year is a cost of $0.2 million for the pension plans and a credit of $0.1 million for the postretirement plans. The expected actuarial (gain) loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in the next fiscal year is a loss of $1.0 million for the pension benefit plans and a gain of $1.5 million for the postretirement benefit plans.
Components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
9,067

 
$
9,217

 
$
9,763

 
$
657

 
$
955

 
$
888

Interest cost
11,897

 
11,832

 
12,356

 
490

 
713

 
779

Expected return on plan assets
(13,041
)
 
(12,006
)
 
(12,189
)
 

 

 

Curtailment income
(97
)
 

 

 

 

 

Settlement expense
4,982

 
2,740

 
1,148

 

 

 

Amortization of net (gain) loss
1,687

 
804

 
471

 
(1,540
)
 
(601
)
 
(912
)
Amortization of prior service cost (credit)
175

 
175

 
175

 
(137
)
 
(137
)
 
(163
)
Net periodic benefit cost (credit)
$
14,670

 
$
12,762

 
$
11,724

 
$
(530
)
 
$
930

 
$
592


The non-service cost components of net periodic benefit cost (credit) are included in other expense, net in the consolidated statement of operations (Note 19).  
The weighted average assumptions used to determine benefit obligations at December 31, 2018 and 2017 were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
Discount rate
4.25
%
 
3.62
%
 
4.27
%
 
3.61
%
Rate of compensation increase
4.00
%
 
4.01
%
 
N/A

 
N/A

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2018, 2017 and 2016 were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Discount rate
3.62
%
 
4.17
%
 
4.16
%
 
3.61
%
 
4.08
%
 
4.30
%
Expected long-term rate of return on plan assets
5.77
%
 
5.77
%
 
6.23
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
4.01
%
 
4.02
%
 
4.07
%
 
N/A

 
N/A

 
N/A


The assumed healthcare cost trend rates used to determine benefit obligations and net periodic benefit cost for postretirement benefits as of and for the years ended December 31, 2018, 2017 and 2016 were as follows:
 
2018
 
2017
 
2016
Healthcare cost trend rate assumed for next year
6.25%/9.00%

 
5.50%/8.50%

 
5.50%/9.00%

Rate that the cost trend rate is assumed to decline
(the ultimate trend rate)
4.50
%
 
4.50
%
 
4.50
%
Year that the rate reaches the ultimate trend rate
2027

 
2024

 
2024


Assumed healthcare cost trend rates have a significant effect on the amounts reported for the postretirement benefits. A one-percentage-point change in assumed healthcare cost trend rates would have the following effects:
 
2018
 
2017
(in thousands)
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
 
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
Effect on total of service cost and interest cost
$
72

 
$
(64
)
 
$
73

 
$
(65
)
Effect on projected benefit obligation
632

 
(572
)
 
665

 
(598
)

Plan Assets
Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2018 were as follows:
(in thousands)
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Asset category
 
 
 
 
 
 
 
Individual securities
 
 
 
 
 
 
 
Fixed income
$
1,682

 
$

 
$
1,682

 
$

Commingled funds
 
 
 
 
 
 
 
Measured at net asset value
215,062

 

 

 

 
$
216,744

 
$

 
$
1,682

 
$

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2017 were as follows:
(in thousands)
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Asset category
 
 
 
 
 
 
 
Individual securities
 
 
 
 
 
 
 
Fixed income
$
1,794

 
$

 
$
1,794

 
$

Commingled funds
 
 
 
 
 
 
 
Measured at net asset value
232,066

 

 

 

 
$
233,860

 
$

 
$
1,794

 
$


Pension assets include fixed income securities and commingled funds. Fixed income securities are valued at daily closing prices or institutional mid-evaluation prices provided by independent industry-recognized pricing sources. Commingled funds are not traded in active markets with quoted prices and as a result, are valued using the net asset values provided by the administrator of the fund. The investments underlying the net asset values are based on quoted prices traded in active markets. In accordance with ASU 2015-7, “Fair Value Measurement: Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)”, the Company has elected the practical expedient to exclude assets measured at net asset value from the fair value hierarchy.
The Company's investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. Asset allocations are based on the underlying liability structure and local regulations. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure.
Master trusts were established to hold the assets of the Company's U.S. defined benefit plans. During the year ended December 31, 2018, the U.S. defined benefit plan asset allocation of these trusts targeted a return-seeking investment allocation of 50% to 76% and a liability-hedging investment allocation of 24% to 50%. During the year ended December 31, 2017, the U.S. defined benefit plan asset allocation of these trusts targeted a return-seeking investment allocation of 64% to 76% and a liability-hedging investment allocation of 24% to 36%. Return-seeking investments include equities, real estate, high yield bonds and other instruments. Liability-hedging investments include assets such as corporate and government fixed income securities.
The Company's future expected blended long-term rate of return on plan assets of 5.84% is determined based on long-term historical performance of plan assets, current asset allocation, and projected long-term rates of return.
Estimated Contributions
The Company expects to make pension contributions of approximately $25.9 million during 2019 based on current assumptions as of December 31, 2018.
Estimated Future Retirement Benefit Payments
The following retirement benefit payments, which reflect expected future service, are expected to be paid as follows:
(in thousands)
Pension
Benefits
 
Postretirement
Benefits
Year ending December 31,
 
 
 
2019
$
28,898

 
$
721

2020
18,536

 
849

2021
20,064

 
1,007

2022
20,266

 
1,138

2023
23,730

 
1,210

Thereafter
125,482

 
7,180

 
$
236,976

 
$
12,105


The estimated future retirement benefit payments noted above are estimates and could change significantly based on differences between actuarial assumptions and actual events and decisions related to lump sum distribution options that are available to participants in certain plans.
International Plans
Pension coverage for certain eligible employees of the Company's international subsidiaries is provided, to the extent deemed appropriate, through separate defined benefit pension plans. The international defined benefit pension plans are included in the tables above. As of December 31, 2018 and 2017, the international pension plans had total projected benefit obligations of $43.9 million and $53.6 million, respectively, and fair values of plan assets of $44.0 million and $53.6 million, respectively. The majority of the plan assets are invested in equity securities. The net periodic benefit cost related to international plans was $0.4 million, $0.9 million and $1.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. The expected actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in the next fiscal year is $0.1 million.
Defined Contribution Plans
The Company sponsors a number of defined contribution plans and company contributions related to these plans are determined under various formulas. Company contributions to defined contribution plans amounted to $16.5 million, $13.8 million and $13.0 million for the years ended December 31, 2018, 2017 and 2016, respectively.
v3.10.0.1
Income Taxes
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The 2017 Tax Act was signed into law on December 22, 2017. The 2017 Tax Act significantly revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax (“Transition Tax”) on accumulated earnings of foreign subsidiaries as of 2017, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The 2017 Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property. In accordance with the 2017 Tax Act, the Company recorded a provisional tax expense of approximately $7.8 million in the fourth quarter of 2017, the period in which the legislation was enacted. This amount was primarily comprised of the remeasurement of federal net deferred tax assets resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35% of approximately $4.0 million, the Transition Tax on the accumulated earnings of foreign subsidiaries of the Company of approximately $8.6 million, offset by the release of the deferred tax liability previously recorded on unremitted earnings of $4.8 million.
Prior year information within this note has been revised. See further discussion of the impact of these revisions included in Note 2 - Revision of Previously Issued Financial Statements.
Additionally, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act. December 22, 2018 marked the end of the measurement period for purposes of SAB 118. As such, the Company has completed its analysis, based upon currently available legislative updates, proposed regulations, and other administrative guidance issued related to the 2017 Tax Act, which resulted in an additional tax expense in the fourth quarter of 2018 of $10.3 million and a total tax expense of $13.9 million for the year ended December 31, 2018.
The Company has determined that its undistributed earnings for most of its foreign subsidiaries are not permanently reinvested. The Company has provided for withholding taxes on all unremitted earnings, as required.
The components of income before income taxes were as follows:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Domestic operations
$
54,003

 
$
61,158

 
$
(3,995
)
Foreign operations
96,301

 
90,518

 
93,217

Income before income taxes
$
150,304

 
$
151,676

 
$
89,222


The following table represents a reconciliation of income taxes computed at the federal statutory income tax rate of 21% for 2018 and 35% for 2017 and 2016 to income tax expense as reported:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Income tax expense computed at federal statutory income tax rate
$
31,564

 
$
53,086

 
$
31,229

Foreign taxes, net of credits
12,138

 
(15,545
)
 
(1,804
)
Impact of the 2017 Tax Act
10,801

 
12,619

 

Net adjustments for uncertain tax positions
771

 
508

 
706

State and local taxes
2,349

 
1,313

 
(525
)
Equity appreciation rights

 
(765
)
 
372

Transaction costs

 
189

 
3,078

Indemnified taxes
144

 
(115
)
 
1,594

Fair value adjustment for common stock warrants

 

 
3,029

Valuation allowance
(10,038
)
 
90

 
955

Deferred charge
1,178

 
(1,295
)
 
1,009

Tax credits
(3,225
)
 
(3,240
)
 
(704
)
Miscellaneous other, net
1,550

 
1,630

 
768

Income tax expense as reported
$
47,232

 
$
48,475

 
$
39,707

Effective income tax rate
31.4
%
 
32.0
%
 
44.5
%


The Company's unrecognized tax benefits represent tax positions for which reserves have been established. The following table represents a reconciliation of the activity related to the unrecognized tax benefits, excluding accrued interest and penalties:
(in thousands)
2018
 
2017
 
2016
Unrecognized tax benefits at beginning of year
$
11,049

 
$
11,347

 
$
13,120

Gross additions - prior year tax positions

 

 
1,960

Gross additions - current year tax positions
801

 
1,159

 
747

Gross reductions - prior year tax positions
(91
)
 
(348
)
 
(4,457
)
Gross reductions - Acquired tax positions settled with tax authorities
(113
)
 
(1,241
)
 

Impact of change in foreign exchange rates

 
132

 
(23
)
Unrecognized tax benefits at end of year
$
11,646

 
$
11,049

 
$
11,347


As of December 31, 2018, 2017 and 2016, the unrecognized tax benefits of $11.6 million, $11.0 million and $11.3 million, respectively, would affect the Company's future effective tax rate if recognized. The Company does not anticipate a material change in unrecognized tax benefits within the next 12 months.
As of December 31, 2018, 2017 and 2016, the Company had unrecognized tax benefits included in the amounts above of $5.0 million, $4.9 million and $5.9 million, respectively, related to periods prior to the Company's acquisition of Acushnet Company and as such, are indemnified by Beam.
As of December 31, 2018, 2017 and 2016, the Company recognized a liability of $3.3 million, $2.7 million and $2.3 million, respectively for interest and penalties, of which $3.0 million, $2.7 million and $1.8 million is indemnified by Beam.
Prior to the Company's acquisition of Acushnet Company, Acushnet Company or its subsidiaries filed certain combined tax returns with Beam. Those and other subsidiaries' income tax returns are periodically examined by various tax authorities. Beam is responsible for managing United States tax audits related to periods prior to July 29, 2011. Acushnet Company is obligated to support these audits and is responsible for managing all non-U.S. audits.
The Company and certain subsidiaries have tax years that remain open and are subject to examination by tax authorities in the following major taxing jurisdictions: United States for years after July 29, 2011, Canada for years after 2013, Japan for years after 2012, Korea for years after 2016, and the United Kingdom for years after 2016. The Company files income tax returns on a combined, unitary, or stand-alone basis in multiple state and local jurisdictions, which generally have statute of limitations from three to four years. Various states and local income tax returns are currently in the process of examination. These examinations are unlikely to result in any significant changes to the amounts of unrecognized tax benefits on the consolidated balance sheet as of December 31, 2018.
The Company's income tax expense includes tax expense of $0.3 million, $0.2 million and $2.2 million for the years ended December 31, 2018, 2017 and 2016, respectively, related to the tax obligations indemnified by Beam. There is an offsetting amount included in other expense, net for the related adjustment to the Beam indemnification asset, resulting in no effect on net income.
Income tax expense was as follows:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Current expense (benefit)
 
 
 
 
 
United States
$
1,795

 
$
(906
)
 
$
3,702

Foreign
29,896

 
28,109

 
28,156

Current income tax expense
31,691

 
27,203

 
31,858

Deferred expense (benefit)
 
 
 
 
 
United States
16,222

 
21,189

 
9,489

Foreign
(681
)
 
83

 
(1,640
)
Deferred income tax expense
15,541

 
21,272

 
7,849

Total income tax expense
$
47,232

 
$
48,475

 
$
39,707



The components of net deferred tax assets (liabilities) were as follows:
 
December 31, 
(in thousands)
2018
 
2017
Deferred tax assets
 
 
 
Compensation and benefits
$
14,036

 
$
14,060

Share-based compensation
7,446

 
5,085

Pension and other postretirement benefits
22,285

 
30,564

Inventories
11,505

 
10,843

R&D capitalization
6,449

 

Accounts receivable
1,101

 
2,016

Customer sales incentives
1,902

 
2,255

Transaction costs
1,580

 
1,804

Other reserves
3,987

 
3,255

Interest
771

 
562

Miscellaneous
1,871

 
1,224

Foreign exchange derivative instruments

 
730

Net operating loss and other tax carryforwards
80,776

 
103,455

Gross deferred tax assets
153,709

 
175,853

Valuation allowance
(15,542
)
 
(25,579
)
Total deferred tax assets
138,167

 
150,274

Deferred tax liabilities
 
 
 
Property, plant and equipment
(8,057
)
 
(11,325
)
Identifiable intangible assets
(54,571
)
 
(47,876
)
Foreign exchange derivative instruments
(1,176
)
 

Miscellaneous
(970
)
 
(954
)
Total deferred tax liabilities
(64,774
)
 
(60,155
)
Net deferred tax asset
$
73,393

 
$
90,119


Under U.S. tax law and regulations, certain changes in the ownership of the Company’s shares can limit the annual utilization of tax attributes (tax loss and tax credit carryforwards) that were generated prior to such ownership changes. The annual limitation could affect the realizability of the Company’s deferred tax assets recorded in the financial statement for its tax credit carryforwards because the carryforward periods have a finite duration. The 2016 initial public offering, and associated share transfers, resulted in significant changes in the composition of the ownership of the Company’s shares. Based on its analysis of the change of ownership tax rules in conjunction with the estimated amount and source of its future earnings and related tax profile, the Company believes its existing tax attributes will be utilized prior to their expiration.
As of December 31, 2018 and 2017, the Company had state net operating loss (“NOL”) carryforwards of $158.9 million and $192.0 million, respectively. These NOL carryforwards expire between 2019 and 2037. As of December 31, 2018 and 2017, the Company had foreign tax credit carryforwards of $58.4 million and $72.8 million, respectively. These foreign tax credits will begin to expire in 2022.
Changes in the valuation allowance for deferred tax assets were as follows:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Valuation allowance at beginning of year
$
25,579

 
$
21,726

 
$
20,771

Increases (decreases) recorded to income tax provision
(10,037
)
 
3,853

 
955

Valuation allowance at end of year
$
15,542

 
$
25,579

 
$
21,726


The Company evaluates the realizability of its deferred tax assets based upon the weight of available positive and negative evidence. In assessing the realizability of these assets, the Company considered numerous factors including historical profitability, the character and estimated future taxable income, prudent and feasible tax planning strategies, and the industry in which it operates. The Company’s conclusion was primarily driven by cumulative income in the U.S. tax jurisdiction and projections of future income driven by the sustained profitability.
The change in the valuation allowance is comprised of an $18.4 million release of its previously recorded valuation allowance against state deferred tax assets, partially offset by an increase of $0.4 million related to state tax attributes, and an increase of $8.0 million related to excess U.S. foreign tax credits arising from its Japan branch operations.
During 2018, the Company early adopted ASU 2018-02 under the aggregate portfolio approach. ASU 2018-02 allows for reclassification of stranded tax effects on items resulting from the 2018 Tax Act from AOCI to retained earnings. Certain tax effects become stranded in AOCI when deferred tax balances originally recorded at the historical income tax rate are adjusted in income from continuing operations based on a lower newly enacted income tax rate. As a result of the adoption, we reclassified the stranded income tax effects resulting from the 2017 Tax Act, decreasing accumulated other comprehensive loss by $4.1 million with a corresponding increase to retained earnings. The reclassification was primarily comprised of amounts relating to available-for-sale securities, pension, postretirement benefit plan obligations and currency translation matters.
v3.10.0.1
Redeemable Convertible Preferred Stock
12 Months Ended
Dec. 31, 2018
Temporary Equity Disclosure [Abstract]  
Redeemable Convertible Preferred Stock
Redeemable Convertible Preferred Stock
Prior to the initial public offering, the Company had outstanding 1,838,027 shares of $0.001 par value Series A preferred stock. Given that certain redemption features of the Series A preferred stock were not solely within the control of the Company, the Series A preferred stock was classified outside of stockholders' equity. All outstanding Series A preferred stock were converted into common stock in conjunction with the Company’s initial public offering (Note 1). Upon conversion, all accrued but unpaid dividends on the shares of the Series A preferred stock were paid to each holder of the shares of the Series A preferred stock. The Company declared and paid dividends to the holders of the Series A preferred stock of $17.3 million during the year ended December 31, 2016. Shares of Series A preferred stock that were redeemed or converted were canceled and retired and cannot be reissued by the Company.
v3.10.0.1
Common Stock
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Common Stock
Common Stock
As of December 31, 2018 and 2017, the Company's certificate of incorporation, as amended and restated, authorized the Company to issue 500,000,000 shares of $0.001 par value common stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company's shareholders. Common shareholders are entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to the prior rights of holders of all classes of stock outstanding.
On June 7, 2018, the Board of Directors authorized the Company to repurchase up to an aggregate of $20.0 million of its issued and outstanding common stock from time to time. On February 14, 2019, the Company's Board of Directors authorized the Company to repurchase up to an additional $30.0 million of its issued and outstanding common stock bringing the total authorization up to $50.0 million. As of December 31, 2018, there were no share repurchases made under this program.
The Company declared dividends per common share, including DERs (Note 17), during the periods presented as follows:
 
Dividends
per Common Share
 
Amounts
(in
thousands)
2018:
 

 
Fourth Quarter
$
0.13


$
9,968

Third Quarter
0.13


9,954

Second Quarter
0.13


9,917

First Quarter
0.13


9,917

Total dividends declared in 2018
$
0.52


$
39,756

 
 
 
 
2017:
 

 
 

Fourth Quarter
$
0.12

 
$
9,098

Third Quarter
0.12

 
9,146

Second Quarter
0.12

 
9,149

First Quarter
0.12

 
9,152

Total dividends declared in 2017
$
0.48

 
$
36,545


There were no dividends declared on common stock during the year end December 31, 2016.
During the first quarter of 2019, the Board of Directors declared a dividend of $0.14 per share to shareholders on record as of March 15, 2019 and payable on March 29, 2019.
v3.10.0.1
Equity Incentive Plans
12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Equity Incentive Plans
Equity Incentive Plans
On January 22, 2016, the Company’s Board of Directors adopted the Acushnet Holdings Corp. 2015 Omnibus Incentive Plan (“2015 Plan”) pursuant to which the Company may grant stock options, stock appreciation rights, restricted shares of common stock, restricted stock units ("RSUs"), performance stock units (“PSUs”) and other share-based and cash-based awards to members of the Board of Directors, officers, employees, consultants and advisors of the Company. The 2015 Plan is administered by the compensation committee (the “Administrator”). The Administrator has the authority to establish the terms and conditions of any award issued or granted under the 2015 Plan. As of December 31, 2018, the only awards that have been granted under the 2015 Plan are RSUs and PSUs.
On January 1, 2012, the Company's Board of Directors adopted the EAR plan in order to compensate certain key employees. During the first quarter of 2017, the Company’s outstanding EAR liability was settled in full by a cash payment to the participants.
Restricted Stock and Performance Stock Units
Each share issued with respect to RSUs and PSUs granted under the 2015 Plan reduces the number of shares available for grant. RSUs and PSUs forfeited and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant. All RSUs and PSUs granted under the 2015 Plan have DERs, which entitle holders of RSUs and PSUs to the same dividend value per share as holders of common stock and can be paid in either cash or common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs. DERs are paid when the underlying shares are delivered. As of December 31, 2018, there were 7,523,536 remaining shares of common stock reserved for issuance under the 2015 Plan of which 5,671,859 remain available for future grants.
RSUs vest, in accordance with the terms of the grant, over one to four years subject to the recipient’s continued service to the Company. PSUs cliff vest, subject to the employees continued employment with the Company, when achievement of the applicable performance metrics (as defined in the applicable award agreements) is deemed probable.
A summary of the Company’s RSUs and PSUs as of December 31, 2018 and 2017 and changes during the years then ended is presented below: 
 
Number
of
RSUs and PSUs

Weighted-
Average
Fair
Value
Outstanding at December 31, 2016
2,459,166


$
20.40

Granted
238,196


18.82

Vested
(437,188
)

20.33

Forfeited
(199,320
)

20.45

Outstanding at December 31, 2017
2,060,854


$
20.23

Granted
473,724


23.49

Vested (1)
(1,367,060
)

20.36

Forfeited
(285,686
)

20.29

Outstanding at December 31, 2018
881,832


$
21.75


(1)
Included 63,490 shares of common stock related to RSUs and 900,226 shares of common stock related to PSUs that were not delivered as of December 31, 2018.
During 2018, RSU vestings, including the impact of DERs issued in common stock, resulted in the issuance of 403,538 shares of common stock, of which 122,795 shares of common stock were withheld by the Company as payment by employees in lieu of cash to satisfy tax withholding obligations. The aggregate fair value of RSUs vesting during the year ended December 31, 2018 was $10.0 million.
On December 31, 2018, based upon the Company’s level of achievement of the applicable cumulative Adjusted EBITDA performance metrics, 900,226 of the outstanding PSUs cliff-vested, with the remaining outstanding PSUs forfeited. Each PSU reflected the right to receive between 0% and 200% of the target number of shares based on the actual three-year cumulative Adjusted EBITDA (as defined in the award agreements). The determination of the target value gave consideration to executive performance, potential future contributions and peer group analysis. As of December 31, 2018, no shares of common stock have been delivered in connection with the PSU vesting. The aggregate fair value of PSUs vesting during the year ended December 31, 2018 was $19.0 million.
Compensation expense recorded related to RSUs and PSUs in the consolidated statement of operations was as follows:
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
RSU
$
12,353

 
$
9,318

 
$
8,361

PSU
6,210

 
5,967

 
6,133


The compensation expense recorded for the year ended December 31, 2018 related to the PSUs was based on the Company’s three-year cumulative Adjusted EBITDA as of December 31, 2018. The remaining unrecognized compensation expense related to non-vested RSUs granted was $7.6 million as of December 31, 2018 and is expected to be recognized over the related weighted average period of 2.0 years.
Equity Appreciation Rights
Prior to settlement in 2017, the EAR awards were re-measured using the intrinsic value method at each reporting period based on a projection of the Company's future common stock equivalent value. The Company’s liability related to the EAR plan was $151.5 million as of December 31, 2016 and was recorded within accrued compensation and benefits on the consolidated balance sheet.
The following table summarizes the Company's EAR activity since December 31, 2016:
(in thousands, except share and per share amounts)
Number
of
Awards
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual Term
 
Aggregate
Intrinsic
Value
Outstanding at December 31, 2016
7,614,000

 
$
19.90

 

 
$
151,511

Settled
(7,614,000
)
 
(19.90
)
 
 
 

Outstanding at December 31, 2017

 


 
 
 


For the year ended December 31, 2016, the Company recorded compensation expense of $6.0 million related to outstanding EARs.
Compensation Expense
The allocation of compensation expense related to equity incentive plans in the consolidated statement of operations was as follows:
 
Year ended December 31,
(in thousands)
2018

2017

2016
Cost of goods sold
$
680


$
408


$
434

Selling, general and administrative expense
16,507


13,687


18,622

Research and development
1,376


1,190


1,485

Total compensation expense before income tax
18,563


15,285


20,541

Income tax benefit
4,398


3,158


6,481

Total compensation expense, net of tax
$
14,165


$
12,127


$
14,060

v3.10.0.1
Accumulated Other Comprehensive Loss, Net of Tax
12 Months Ended
Dec. 31, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Accumulated Other Comprehensive Loss, Net of Tax
Accumulated Other Comprehensive Loss, Net of Tax
Accumulated other comprehensive loss, net of tax consists of foreign currency translation adjustments, unrealized gains and losses from derivative instruments designated as cash flow hedges (Note 11) and pension and other postretirement adjustments (Note 13). Prior to the adoption of ASU 2016-01 on January 1, 2018, accumulated other comprehensive loss, net of tax included unrealized gains from available-for-sale securities (Note 2).
The components of and changes in accumulated other comprehensive loss, net of tax, were as follows:
(in thousands)
Foreign
Currency
Translation
Adjustments
 
Gains (Losses) on
Cash Flow
Derivative
Instruments
 
Gains
on Available-
for-Sale
Securities
 
Pension and
Other
Postretirement
Adjustments
 
Accumulated
Other
Comprehensive
Loss
Balances at December 31, 2016
$
(84,675
)
 
$
10,535

 
$
1,536

 
$
(18,230
)
 
$
(90,834
)
Other comprehensive income (loss) before reclassifications
26,964

 
(15,558
)
 
150

 
(9,870
)
 
1,686

Amounts reclassified from accumulated other comprehensive loss

 
(1,329
)
 

 
2,981

 
1,652

Tax benefit

 
4,072

 
35

 
1,698

 
5,805

Balances at December 31, 2017
$
(57,711
)
 
$
(2,280
)
 
$
1,721

 
$
(23,421
)
 
$
(81,691
)
Adoption of new accounting standards (Notes 2 & 14)
(2,171
)
 

 
(1,721
)
 
(2,240
)
 
(6,132
)
Other comprehensive income (loss) before reclassifications
(11,971
)
 
6,222

 

 
620

 
(5,129
)
Amounts reclassified from accumulated other comprehensive loss, net of tax

 
1,886

 

 
5,070

 
6,956

Tax expense

 
(1,668
)
 

 
(1,375
)
 
(3,043
)
Balances at December 31, 2018
$
(71,853
)
 
$
4,160

 
$

 
$
(21,346
)
 
$
(89,039
)
v3.10.0.1
Interest Expense, Net and Other Expense, Net
12 Months Ended
Dec. 31, 2018
Interest Expense and Other (Income) Expense, Net  
Interest Expense, Net and Other Expense, Net
Interest Expense, Net and Other Expense, Net
The components of interest expense, net were as follows:
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Related party interest expense
$

 
$

 
$
28,146

Third party interest expense
19,171

 
16,907

 
23,113

Loss on interest rate swap
476

 

 

Third party interest income
(1,245
)
 
(1,198
)
 
(1,351
)
Total interest expense, net
$
18,402

 
$
15,709

 
$
49,908


The components of other expense, net were as follows:
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Loss on fair value of common stock warrants
$

 
$

 
$
6,112

Indemnification (gains) losses
(258
)
 
177

 
(2,174
)
Non-service cost component of net periodic benefit cost
4,416

 
3,520

 
1,665

Other income
(529
)
 
(1,254
)
 
(2,232
)
Total other expense, net
$
3,629

 
$
2,443

 
$
3,371

v3.10.0.1
Net Income per Common Share
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Net Income per Common Share
Net Income per Common Share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 
Year ended December 31,
(in thousands, except share and per share amounts)
2018
 
2017
 
2016
Net income attributable to Acushnet Holdings Corp.
$
99,872

 
$
98,695

 
$
45,012

Less: dividends earned by preferred shareholders

 

 
(11,576
)
Less: allocation of undistributed earnings to preferred shareholders

 

 
(10,247
)
Net income attributable to common stockholders - basic
99,872

 
98,695

 
23,189

Adjustments to net income for dilutive securities

 

 
16,475

Net income attributable to common stockholders - diluted
$
99,872

 
$
98,695

 
$
39,664

Weighted average number of common shares:
 
 
 
 
 
Basic
74,766,176

 
74,399,836

 
31,247,643

Diluted
75,472,342

 
74,590,999

 
64,323,742

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
Basic
$
1.34

 
$
1.33

 
$
0.74

Diluted
$
1.32

 
$
1.32

 
$
0.62


For the years ended December 31, 2018 and 2017, net income per common share attributable to Acushnet Holdings Corp. was calculated under the treasury stock method. Net income per common share attributable to Acushnet Holdings Corp. for the year ended 2016 was calculated under the two-class method.
The Company’s potential dilutive securities for the years ended December 31, 2018 and 2017 include RSUs and PSUs. PSUs vest based upon achievement of performance targets and are excluded from the diluted shares outstanding unless the performance targets have been met as of the end of the applicable reporting period regardless of whether such performance targets are probable of achievement. As of December 31, 2018, an amount within the performance target range was achieved relating to the PSUs and as a result, the PSUs have been included in diluted shares outstanding for the year ended December 31, 2018. For the year ended December 31, 2016, the Company’s potential dilutive securities include RSUs, PSUs, Series A preferred stock, warrants to purchase common stock and convertible notes.
The following securities have been excluded from the calculation of diluted weighted‑average common shares outstanding as their impact was determined to be anti‑dilutive:
 
Year ended December 31,
 
2018
 
2017
 
2016
Series A preferred stock

 

 
13,807,486

Warrants to purchase common stock

 

 
1,807,171

RSUs
13,885

 
360,659

 

v3.10.0.1
Segment Information
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. The Company has four reportable segments that are organized on the basis of product categories. These segments include Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear.
The CODM primarily evaluates performance using segment operating income. Segment operating income includes directly attributable expenses and certain shared costs of corporate administration that are allocated to the reportable segments, but excludes interest expense, net; the non-service cost component of net periodic benefit cost; EAR expense; losses on the fair value of common stock warrants; transaction fees and other non-operating gains and losses as the Company does not allocate these to the reportable segments. The CODM does not evaluate a measure of assets when assessing performance.
Results shown for the years ended December 31, 2018, 2017 and 2016 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.
Information by reportable segment and a reconciliation to reported amounts are as follows:
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Net sales
 
 
 
 
 
Titleist golf balls
$
523,967

 
$
512,041

 
$
513,899

Titleist golf clubs
445,341

 
397,987

 
430,966

Titleist golf gear
146,067

 
142,911

 
136,208

FootJoy golf wear
439,681

 
437,455

 
433,061

Other
78,665

 
69,864

 
58,141

Total net sales
$
1,633,721

 
$
1,560,258

 
$
1,572,275

Segment operating income
 
 
 
 
 
Titleist golf balls
$
78,973

 
$
78,419

 
$
76,954

Titleist golf clubs
45,156

 
32,084

 
51,003

Titleist golf gear
15,430

 
16,803

 
12,212

FootJoy golf wear
17,974

 
27,038

 
19,305

Other
15,560

 
14,904

 
7,324

Total segment operating income
173,093

 
169,248

 
166,798

Reconciling items:
 
 
 
 
 
Interest expense, net
(18,402
)
 
(15,709
)
 
(49,908
)
Non-service cost component of net periodic benefit cost
(4,416
)
 
(3,520
)
 
(1,665
)
EAR expense

 

 
(6,047
)
Loss on fair value of common stock warrants

 

 
(6,112
)
Transaction fees
(599
)
 
(686
)
 
(16,817
)
Other
628

 
2,343

 
2,973

Total income before income tax
$
150,304

 
$
151,676

 
$
89,222


Depreciation and amortization expense by reportable segment are as follows:
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Depreciation and amortization
 
 
 
 
 
Titleist golf balls
$
24,155

 
$
25,545

 
$
26,104

Titleist golf clubs
7,408

 
7,233

 
7,021

Titleist golf gear
1,531

 
1,425

 
1,250

FootJoy golf wear
6,731

 
6,058

 
5,759

Other
671

 
610

 
700

Total depreciation and amortization
$
40,496

 
$
40,871

 
$
40,834


Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Net sales
 
 
 
 
 
United States
$
826,111

 
$
789,879

 
$
804,516

EMEA (1)
219,803

 
205,200

 
210,088

Japan
199,107

 
201,264

 
219,021

Korea
221,146

 
200,394

 
175,956

Rest of world
167,554

 
163,521

 
162,694

Total net sales
$
1,633,721

 
$
1,560,258

 
$
1,572,275

___________________________________
(1) Europe, the Middle East and Africa (“EMEA”)
Long-lived assets (property, plant and equipment) are categorized based on their location of domicile.
 
Year ended December 31,
(in thousands)
2018
 
2017
Long-lived assets
 
 
 
United States
$
146,596

 
$
148,678

EMEA
9,472

 
9,669

Japan
764

 
770

Korea
5,682

 
3,782

Rest of world (2)
65,874

 
66,023

Total long-lived assets
$
228,388

 
$
228,922

___________________________________
(2)
Includes manufacturing facilities in Thailand with long lived assets of $52.2 million and $53.8 million as of December 31, 2018 and 2017, respectively.
v3.10.0.1
Business Combinations
12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Business Combinations
Business Combinations
On October 1, 2018, the Company completed the acquisition of an 80% interest in certain assets and liabilities of PG Professional Golf, a leading supplier of pre-owned Titleist and other golf balls, for a purchase price of $14.4 million. The results of PG Professional Golf have been included in the Company's Titleist golf ball reporting segment since the date of acquisition.
In January 2018, the Company acquired all of the assets of Links & Kings, LLC which was not material to the consolidated financial statements of the Company. Links & Kings, LLC is a company dedicated to the design and handcrafted production of luxury leather golf and lifestyle products. The results of Links & Kings, LLC have been included in the Company's FootJoy golf wear reporting segment since the date of acquisition.
v3.10.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Purchase Obligations
During the normal course of its business, the Company enters into agreements to purchase goods and services, including purchase commitments for production materials, finished goods inventory, capital expenditures and endorsement arrangements with professional golfers. The reported amounts exclude those liabilities included in accounts payable or accrued liabilities on the consolidated balance sheet as of December 31, 2018.
Purchase obligations by the Company as of December 31, 2018 were as follows:
 
Payments Due by Period
(in thousands)
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
Purchase obligations
$
151,463

 
$
18,804

 
$
6,113

 
$
1,850

 
$
1,391

 
$
4,804


Lease Commitments
The Company leases certain warehouses, distribution and office facilities, vehicles and office equipment under operating leases. Most lease arrangements provide the Company with the option to renew leases at defined terms. The future operating lease obligations would change if the Company were to exercise these options or if it were to enter into additional operating leases.
The Company has an operating lease for certain vehicles that provides for a residual value guarantee. The lease has a noncancelable lease term of one year and may be renewed annually over the subsequent five years. The Company has the option to terminate the lease at the annual renewal date. Termination of the lease results in the sale of the vehicles and the determination of the residual value. The residual value is calculated by comparing the net proceeds of the vehicles sold to the depreciated value at the end of the renewal period. The Company is not responsible for any deficiency resulting from the net proceeds being less than 20% of the original cost in the first year and 20% of the depreciated value for all subsequent years. The Company believes that this guarantee will not have a significant impact on the consolidated financial statements.
Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows:
(in thousands)
 
Year ending December 31,
 
2019
$
13,119

2020
11,053

2021
7,984

2022
5,345

2023
3,133

Thereafter
13,852

Total minimum rental payments
$
54,486


Total rental expense for all operating leases amounted to $15.7 million, $16.3 million and $16.5 million for the years ended December 31, 2018, 2017 and 2016, respectively.
Contingencies
In connection with the Company’s acquisition of Acushnet Company, Beam indemnified the Company for certain tax related obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company. As of December 31, 2018 and 2017, the Company’s estimate of its receivable for these indemnifications was $8.9 million and $8.7 million, respectively, which was recorded in other noncurrent assets on the consolidated balance sheet.
Litigation
The Company and its subsidiaries are defendants in lawsuits associated with the normal conduct of their businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that some of these actions could be decided unfavorably. Consequently, the Company is unable to estimate the ultimate aggregate amount of monetary loss, amounts covered by insurance or the financial impact that will result from such matters and has not recorded a liability related to potential losses.
v3.10.0.1
Unaudited Quarterly Financial Data
12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Unaudited Quarterly Financial Data
Unaudited Quarterly Financial Data 
The tables below summarize quarterly results for fiscal 2018:
 
Quarter ended (unaudited)
(in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
2018
 
 
 
 
 
 
 
Net sales
$
343,355

 
$
370,427

 
$
478,138

 
$
441,801

Gross profit
174,929

 
188,938

 
250,810

 
227,674

Income from operations
19,599

 
25,873

 
64,579

 
62,284

Net income
12,264

 
7,349

 
40,369

 
43,090

Net income attributable to Acushnet Holdings Corp.
11,418

 
7,063

 
39,907

 
41,484

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
 
 
Basic
$
0.15

 
$
0.09

 
$
0.53

 
$
0.56

Diluted
$
0.15

 
$
0.09

 
$
0.53

 
$
0.55

 
The tables below summarize quarterly results for fiscal 2017:
 
Quarter ended (unaudited)
(in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
2017
 
 
 
 
 
 
 
Net sales
$
351,392

 
$
347,263

 
$
427,988

 
$
433,615

Gross profit
179,372

 
173,104

 
222,966

 
226,415

Income from operations
28,282

 
19,180

 
57,892

 
64,474

Net income
18,899

 
10,634

 
34,038

 
39,630

Net income attributable to Acushnet Holdings Corp.
18,247

 
9,318

 
33,016

 
38,114

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
 
 
Basic
$
0.25

 
$
0.13

 
$
0.44

 
$
0.51

Diluted
$
0.24

 
$
0.12

 
$
0.44

 
$
0.51


Net income per common share is computed individually for each of the quarters presented; therefore, the sum of the quarterly net income per common share may not necessarily equal the total for the year.
During the fourth quarter of 2018, the Company revised the results for the fourth quarter of 2017. The Company determined that in 2011 it did not record a required deferred income tax liability on the difference between the book and tax basis of intangible assets resulting from the 2011 acquisition of Acushnet Company. This deferred tax liability should have been remeasured during the fourth quarter of 2017 based upon the change in tax rates resulting from the 2017 Tax Act. The Company has corrected these errors as a revision to the previously issued financial statements and related footnotes. The correction of these errors resulted in a decrease in income tax expense of $6.6 million, an increase in net income of $6.6 million, an increase in basic net income per common share of $0.09 and an increase in diluted net income per common share of $0.08 for the quarter ended December 31, 2017. See further discussion of the impact of these revisions included in Note 2 - Revision of Previously Issued Financial Statements.
v3.10.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company, its wholly- owned subsidiaries and less than wholly-owned subsidiaries, including a variable interest entity (“VIE”) in which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to current year presentation.
Use of Estimates
Use of Estimates
The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities in its consolidated financial statements. Actual results could differ from those estimates.
Variable Interest Entities
Variable Interest Entities
VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE.
The Company consolidates the accounts of Acushnet Lionscore Limited, a VIE which is 40% owned by the Company. The sole purpose of the VIE is to manufacture the Company’s golf footwear and as such, the Company is deemed to be the primary beneficiary. The Company has presented separately on its consolidated balance sheets, to the extent material, the assets of its consolidated VIE that can only be used to settle specific obligations of its consolidated VIE and the liabilities of its consolidated VIE for which creditors do not have recourse to its general credit. The general creditors of the VIE do not have recourse to the Company. Certain directors of the VIE have guaranteed the credit lines of the VIE, for which there were no outstanding borrowings as of December 31, 2018 and 2017. In addition, pursuant to the terms of the agreement governing the VIE, the Company is not required to provide financial support to the VIE.
Noncontrolling Interests
Noncontrolling Interests
The ownership interest held by owners other than the Company in less than wholly-owned subsidiaries are classified as noncontrolling interests. The value attributable to the noncontrolling interests is presented on the consolidated balance sheets within shareholders' equity, separately from the equity attributable to the Company. Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests are presented separately on the consolidated statements of operations and consolidated statements of comprehensive income, respectively.
Cash and Restricted Cash
Cash and Restricted Cash
Cash held in Company checking accounts is included in cash. Book overdrafts not subject to offset with other accounts with the same financial institution are classified as accounts payable.
Concentration of Credit Risk and of Significant Customers
Concentration of Credit Risk and of Significant Customers
Financial instruments that potentially expose the Company to concentration of credit risk are cash and accounts receivable. Substantially all of the Company's cash deposits are maintained at large, creditworthy financial institutions. The Company's deposits, at times, may exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As part of its ongoing procedures, the Company monitors its concentration of deposits with various financial institutions in order to avoid any undue exposure. As of December 31, 2018 and 2017, the Company had $28.6 million and $44.7 million, respectively, in banks located outside the United States. The risk with respect to the Company's accounts receivable is managed by the Company through its policy of monitoring the creditworthiness of its customers to which it grants credit terms in the normal course of business.
Inventories
Inventories
Inventories are valued at the lower of cost and net realizable value. Cost is determined using the first-in, first-out inventory method. The inventory balance, which includes material, labor and manufacturing overhead costs, is recorded net of an allowance for obsolete or slow moving inventory. The Company's allowance for obsolete or slow moving inventory contains estimates regarding uncertainties. Such estimates are updated each reporting period and require the Company to make assumptions and to apply judgment regarding a number of factors, including market conditions, selling environment, historical results and current inventory trends.
Property, Plant and Equipment
Property, Plant and Equipment
Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Gains or losses resulting from disposals are included in income from operations. Betterments and renewals, which improve and extend the life of an asset, are capitalized. Maintenance and repair costs are expensed as incurred.
Estimated useful lives of property, plant and equipment asset categories were as follows:
Buildings and improvements
15
-
40 years
Machinery and equipment
3
-
10 years
Furniture, fixtures and computer hardware
3
-
10 years
Computer software
1
-
10 years
 
Leasehold and tenant improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets.
Certain costs incurred in connection with the development of the Company's internal-use software are capitalized. Internal-use software development costs are primarily related to the Company's enterprise resource planning system. Costs incurred in the preliminary stages of development are expensed as incurred. Internal and external costs incurred in the application development phase, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. Costs such as maintenance and training are expensed as incurred. The capitalized internal-use software costs are included in property, plant and equipment and once the software is placed into service are amortized over the estimated useful life which ranges from three to ten years.
Long-Lived Assets
Long-Lived Assets
A long-lived asset (including amortizing intangible assets) or asset group is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the asset or asset group. The cash flows are based on the best estimate of future cash flows derived from the most recent business projections. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset's or asset group's carrying value over its fair value. Fair value is determined based on discounted expected future cash flows on a market participant basis. Any impairment charge would be recognized within operating expenses as a selling, general and administrative expense.
The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets may warrant revision or that the remaining balance may not be recoverable. These factors may include a significant deterioration of operating results, changes in business plans, or changes in anticipated cash flows.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized but instead are measured for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying amount of the asset may be impaired.
Goodwill is assigned to reporting units for purposes of impairment testing. A reporting unit may be the same as an operating segment or one level below an operating segment. For purposes of assessing potential impairment, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company records goodwill impairment in the amount of the excess of a reporting unit’s carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The fair value of the reporting units is determined using the income approach. The income approach uses a discounted cash flow analysis which involves applying appropriate discount rates to estimated future cash flows based on forecasts of sales, costs and capital requirements.
Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. Certain of the Company's trademarks have been assigned an indefinite life as the Company currently anticipates that these trademarks will contribute to its cash flows indefinitely. Indefinite-lived trademarks are reviewed for impairment annually and may be reviewed more frequently if indicators of impairment are present. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trademarks using the relief-from-royalty method, which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. See Note 7 for additional information.
The Company performs its annual impairment tests in the fourth quarter of each fiscal year.
Deferred Financing Costs
Deferred Financing Costs
The Company defers costs directly associated with acquiring third-party financing. These deferred costs are amortized as interest expense over the term of the related indebtedness. Deferred financing costs associated with the revolving credit facilities are included in other current and noncurrent assets and deferred financing costs associated with all other indebtedness are netted against long-term debt and capital lease obligations on the consolidated balance sheet.
Fair Value Measurements
Fair Value Measurements
Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
Level 1—Quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.
The Company’s derivative instrument assets and liabilities are carried at fair value determined according to the fair value hierarchy described above (Note 11 and 12). The carrying value of accounts receivable, accounts payable and accrued expenses approximates fair value due to the short-term nature of these assets and liabilities. The Company adopted the fair value measurement disclosures for nonfinancial assets and liabilities, such as goodwill and indefinite-lived intangible assets.
In some instances where a market price is available, but the instrument is in an inactive or over-the-counter market, the Company consistently applies the dealer (market maker) pricing estimate and uses a midpoint approach on bid and ask prices from financial institutions to determine the reasonableness of these estimates. Assets and liabilities subject to this fair value valuation approach are typically classified as Level 2.
Pension and Other Postretirement Benefit Plans
Pension and Other Postretirement Benefit Plans
The Company provides U.S. and foreign defined benefit and defined contribution plans to certain eligible employees and postretirement benefits to certain retirees, including pensions, postretirement healthcare benefits and other postretirement benefits.
Plan assets and obligations are measured using various actuarial assumptions, such as discount rates, rate of compensation increase, mortality rates, turnover rates and health care cost trend rates, as determined at each year end measurement date. The measurement of net periodic benefit cost is based on various actuarial assumptions, including discount rates, expected return on plan assets and rate of compensation increase, which are determined as of the prior year measurement date. The determination of the discount rate is generally based on an index created from a hypothetical bond portfolio consisting of high-quality fixed income securities with durations that match the timing of expected benefit payments. The expected return on plan assets is determined based on several factors, including adjusted historical returns, historical risk premiums for various asset classes and target asset allocations within the portfolio. Adjustments made to the historical returns are based on recent return experience in the equity and fixed income markets and the belief that deviations from historical returns are likely over the relevant investment horizon. Actual cost is also dependent on various other factors related to the employees covered by these plans. The effects of actuarial deviations from assumptions are generally accumulated and, if over a specified corridor, amortized over the remaining service period of the employees. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. The Company's actuarial assumptions are reviewed on an annual basis and modified when appropriate.
To calculate the U.S. pension and postretirement benefit plan expense in 2018 and 2017, the Company applied the individual spot rates along the yield curve that correspond with the timing of each future cash outflow for the benefit payments in order to calculate interest cost and service cost.  Prior to 2017, the service cost and interest cost components were determined using a single weighted-average discount rate. The change does not affect the measurement of the total benefit plan obligations, as the change in the service cost and interest cost offsets in the actuarial gains and losses recorded in other comprehensive income (loss). The Company changed to the new method to provide a more precise measure of service and interest cost by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company accounted for this change as a change in estimate prospectively beginning in 2017.
Income Taxes
Income Taxes
The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between consolidated financial statement carrying amounts and tax basis amounts at enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce deferred income tax assets when it is more-likely-than-not that such assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies.
The Company records liabilities for uncertain income tax positions based on the two step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances, and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of income.
Beam has indemnified certain tax obligations that relate to periods during which Fortune Brands, Inc. owned Acushnet Company (Note 23). These estimated tax obligations are recorded in accrued taxes and other noncurrent liabilities, and the related indemnification receivable is recorded in other noncurrent assets on the consolidated balance sheet. Any changes in the value of these specifically identified tax obligations are recorded in the period identified in income tax expense and the related change in the indemnification asset is recorded in other expense, net on the consolidated statement of operations. See Note 14 for additional information.
On December 22, 2017, the U.S. enacted the 2017 Tax Act. The 2017 Tax Act contains a new law that subjects the Company to a tax on Global Intangible Low-Taxed Income (“GILTI”), beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of related foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences, including outside basis differences, expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost.
Cost of Goods Sold
Cost of Goods Sold
Cost of goods sold includes all costs to make products salable, such as inbound freight, purchasing and receiving costs, inspection costs and transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them salable is included in cost of goods sold.
Product Warranty
Product Warranty
The Company has defined warranties ranging from one to two years. Products covered by the defined warranty policies include all Titleist golf products, FootJoy golf shoes, and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims, and the cost to replace or repair products under warranty.
Advertising and Promotion
Advertising and Promotion
Advertising and promotional costs are included in selling, general and administrative expense on the consolidated statement of operations and include product endorsement arrangements with members of the various professional golf tours, media placement and production costs (television, print and internet), tour support expenses and point-of-sale materials. Advertising production costs are expensed as incurred. Media placement costs are expensed in the month the advertising first appears. Product endorsement arrangements are expensed based upon the specific provisions of player contracts.
Selling
Selling
Selling expenses including field sales, sales administration and shipping and handling costs are included in selling, general and administrative expense on the consolidated statement of operations.
Research and Development
Research and Development
Research and development expenses include product development, product improvement, product engineering, and process improvement costs and are expensed as incurred.
Foreign Currency Translation and Transactions
Foreign Currency Translation and Transactions
Assets and liabilities denominated in foreign currency are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Revenues and expenses are translated at the average rates of exchange for the reporting period. The related translation adjustments are recorded as a component of accumulated other comprehensive loss. Transactions denominated in a currency other than the functional currency are re-measured into functional currency with resulting transaction gains or losses recorded as selling, general and administrative expense on the consolidated statement of operations.
Derivative Financial Instruments
Derivative Financial Instruments
All derivative instruments are recognized as either assets or liabilities on the consolidated balance sheet and are measured at fair value. If the derivative instrument is designated as a fair value hedge, the changes in the fair value of the derivative instruments and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and are recognized in the consolidated statement of operations when the hedged item affects earnings. Any portion of the change in fair value that is determined to be ineffective is immediately recognized in earnings. Cash flows from derivative financial instruments and the related hedged transactions are included in cash flows from operating activities. See Note 11 for additional information.
Share-based Compensation
Share-based Compensation
The Company has a share-based compensation plan for board of directors, officers, employees, consultants and advisors of the Company. All awards granted under the plan are measured at fair value at the date of the grant. The Company issues share-based awards with service-based vesting conditions and performance-based vesting conditions. Awards with service-based vesting conditions are amortized as expense over the requisite service period of the award, which is generally the vesting period of the respective award. For awards with performance-based vesting conditions, the measurement of the expense is based on the Company’s level of achievement of performance metrics as defined in the applicable award agreements. The Company accounts for forfeitures in compensation expense when they occur.
Net Income per Common Share
Net Income per Common Share
Net income per common share attributable to Acushnet Holdings Corp. is calculated under the treasury stock method. Prior to the conversion of the redeemable convertible preferred shares to common stock in connection with the Company’s initial public offering in 2016, the Company applied the two-class method to calculate its basic and diluted net income per common share attributable to Acushnet Holdings Corp., as its redeemable convertible preferred shares were participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. Net income per common share available to Acushnet Holdings Corp. was determined by allocating undistributed earnings between holders of common shares and redeemable convertible preferred shares, based on the participation rights of the preferred shares. Basic net income per common share attributable to Acushnet Holdings Corp. was computed by dividing the net income available to Acushnet Holdings Corp. by the basic weighted-average number of common shares outstanding during the period. Diluted net income per common share attributable to Acushnet Holdings Corp. was computed by dividing the net income available to Acushnet Holdings Corp. after giving effect to the diluted securities by the weighted-average number of dilutive shares outstanding during the period.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards
Recently Adopted Accounting Standards
Revenue from Contracts with Customers
On January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" ("ASC 606") and all the related amendments (the “new revenue standard”) using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to opening retained earnings (Note 3). The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
Income Statement—Reporting Comprehensive Income
On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2018‑02, “Income Statement—Reporting Comprehensive Income (Topic 220) —Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” As a result of the adoption of the amendments in this update, the Company recorded a reclassification from accumulated other comprehensive loss, net of tax to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (Note 14). The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
Financial Instruments—Recognition and Measurement
On January 1, 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 supersedes the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and requires equity securities to be measured at fair value with changes in the fair value recognized through net income, among other items (Note 18). As a result of the adoption of the amendments in this update, the Company recorded a reclassification of unrealized gains of $2.1 million from accumulated other comprehensive loss, net of tax to retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
Compensation—Retirement Benefits
On January 1, 2018, the Company adopted ASU 2017‑07, “Compensation—Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” ("ASU 2017-07"). ASU 2017‑07 requires that an employer report the service cost component of net periodic pension and net periodic post retirement cost in the same line item as other compensation costs arising from services rendered by the employees during the period. It also requires the other components of net periodic pension and net periodic postretirement benefit cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component is eligible for capitalization. As a result of the adoption of the amendments in this update, the Company recorded a reclassification of the non-service cost component of net periodic benefit cost of $3.5 million and $1.7 million from cost of goods sold and operating expenses to other expense, net on the consolidated statement of operations for the years ended December 31, 2017 and 2016, respectively (Notes 13 and 19). The adoption of this standard also resulted in the restatement of the Company's segment operating income for the years ended December 31, 2017 and 2016 (Note 21) and unaudited quarterly financial data for the quarter ended December 31, 2017 (Note 24).
Intangibles—Goodwill and OtherSimplifying the Test for Goodwill Impairment
On October 31, 2018, the Company adopted ASU 2017‑04, “Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment” ("ASU 2017-04"). ASU 2017‑04 removes the second step of the goodwill impairment test. Instead an entity will perform a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The adoption of this standard did not have an impact on the Company's assessment of goodwill impairment or its consolidated financial statements.
The Company also adopted the following standards during 2018, none of which had a material impact to the Company's financial statements or financial statement disclosures:
Standard
 
 
 
Effective Date
ASU 2017‑09
 
Compensation—Stock Compensation: Scope of Modification Accounting
 
January 1, 2018
ASU 2017‑01
 
Business Combinations: Clarifying the Definition of a Business
 
January 1, 2018
ASU 2016‑16
 
Income Taxes: Intra-Entity Transfers of Assets other than Inventory
 
January 1, 2018
ASU 2016‑15
 
Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments
 
January 1, 2018

Recently Issued Accounting Standards
Intangibles —Goodwill and Other —Internal-Use Software
In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-15, "Intangibles —Goodwill and Other —Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ("ASU 2018-15"). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for fiscal years ending after December 15, 2019. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
Defined Benefit Plans—Changes to the Disclosure Requirements for Defined Benefit Plans
In August 2018, the FASB issued ASU 2018-14, "Compensation —Retirement Benefits —Defined Benefit Plans —General (Subtopic 715-20) —Disclosure Framework —Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14"). The amendments in this update remove defined benefit plan disclosures that are no longer considered cost-beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The adoption of this standard should be applied to all periods presented. The adoption of this standard will not have a material impact on the consolidated financial statements.
Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820) —Disclosure Framework —Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in this update improve the effectiveness of fair value measurement disclosures. ASU 2018-13 is effective for fiscal years ending after December 15, 2019. Early adoption is permitted. The adoption of this standard should be applied to all periods presented. The adoption of this standard will not have a material impact on the consolidated financial statements.
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
In August 2017, the FASB issued ASU 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” ("ASU 2017-12"). The amendments in this update expand and refine hedge accounting guidance and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 also simplifies the application of hedge accounting guidance, hedge documentation requirements and the assessment of hedge effectiveness. ASU 2017‑12 is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued or made available for issuance. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
Leases
In February 2016, the FASB issued ASU 2016‑02, “Leases,” which will require lessees to recognize right-of-use assets and lease liabilities for leases which were formerly classified as operating leases. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU 2018-11, "Leases (Topic 842): Targeted Improvements", which provides an optional approach to initially apply the new lease guidance upon the adoption date, without adjusting the comparative periods presented. The Company adopted ASU 2016-02 on January 1, 2019, using the optional transition approach which allows for a cumulative effect adjustment in the period of adoption and will not restate prior periods. Although the Company is continuing to assess the potential impact this ASU will have on its consolidated balance sheet and related disclosures, it expects the adoption of this standard to result in the recognition of right-of-use assets and lease liabilities in the range of $40.0 million and $50.0 million. The Company does not expect a material impact to its consolidated statements of operations or cash flows.
v3.10.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of estimated useful lives of property, plant and equipment
Estimated useful lives of property, plant and equipment asset categories were as follows:
Buildings and improvements
15
-
40 years
Machinery and equipment
3
-
10 years
Furniture, fixtures and computer hardware
3
-
10 years
Computer software
1
-
10 years
 
Schedule of recently adopted accounting standards with no material impact
The Company also adopted the following standards during 2018, none of which had a material impact to the Company's financial statements or financial statement disclosures:
Standard
 
 
 
Effective Date
ASU 2017‑09
 
Compensation—Stock Compensation: Scope of Modification Accounting
 
January 1, 2018
ASU 2017‑01
 
Business Combinations: Clarifying the Definition of a Business
 
January 1, 2018
ASU 2016‑16
 
Income Taxes: Intra-Entity Transfers of Assets other than Inventory
 
January 1, 2018
ASU 2016‑15
 
Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments
 
January 1, 2018
v3.10.0.1
Allowance for Doubtful Accounts (Tables)
12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Schedule of activity related to the allowance for doubtful accounts
The activity related to the allowance for doubtful accounts was as follows:
(in thousands)
2018
 
2017
 
2016
Balance at beginning of year
$
9,975

 
$
12,255

 
$
12,363

Bad debt expense
(583
)
 
337

 
6,507

Amount of receivables written off
(1,873
)
 
(3,300
)
 
(6,315
)
Foreign currency translation
(247
)
 
683

 
(300
)
Balance at end of year
$
7,272

 
$
9,975

 
$
12,255

v3.10.0.1
Inventories (Tables)
12 Months Ended
Dec. 31, 2018
Inventory Disclosure [Abstract]  
Schedule of inventory
The components of inventories were as follows:
(in thousands)
December 31,
2018
 
December 31,
2017
Raw materials and supplies
$
71,068

 
$
72,342

Work-in-process
21,763

 
23,956

Finished goods
268,376

 
267,664

Inventories
$
361,207

 
$
363,962

v3.10.0.1
Property, Plant and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Schedule of property, plant and equipment, net
The components of property, plant and equipment, net were as follows:
(in thousands)
December 31,
2018
 
December 31,
2017
Land
$
14,515

 
$
14,618

Buildings and improvements
142,113

 
138,570

Machinery and equipment
160,707

 
148,999

Furniture, computers and equipment
36,405

 
32,783

Computer software
62,517

 
60,736

Construction in progress
19,999

 
13,586

Property, plant and equipment, gross
436,256

 
409,292

Accumulated depreciation and amortization
(207,868
)
 
(180,370
)
Property, plant and equipment, net
$
228,388

 
$
228,922

v3.10.0.1
Goodwill and Identifiable Intangible Assets, Net (Tables)
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill
Goodwill allocated to the Company's reportable segments and changes in the carrying amount of goodwill were as follows:
(in thousands)
Titleist
Golf Balls
 
Titleist
Golf Clubs
 
Titleist
Golf Gear
 
FootJoy
Golf Wear
 
Other
 
Total
Balances at December 31, 2016
$
115,693

 
$
56,187

 
$
13,624

 
$
2,500

 
$
8,699

 
$
196,703

Foreign currency translation
3,941

 
1,914

 
464

 
85

 
296

 
6,700

Balances at December 31, 2017
119,634

 
58,101

 
14,088

 
2,585

 
8,995

 
203,403

Acquisitions (Note 22)
8,492

 

 

 
1,071

 

 
9,563

Foreign currency translation
(1,931
)
 
(949
)
 
(222
)
 
(43
)
 
(150
)
 
(3,295
)
Balances at December 31, 2018
$
126,195

 
$
57,152

 
$
13,866

 
$
3,613

 
$
8,845

 
$
209,671

 
Schedule of net carrying value by class of identifiable intangible assets
The net carrying value by class of identifiable intangible assets was as follows:
 
Weighted
Average
Useful
Life (Years)
 
December 31, 2018
 
December 31, 2017
(in thousands)
 
Gross
 
Accumulated
Amortization
 
Net Book
Value
 
Gross
 
Accumulated
Amortization
 
Net Book
Value
Indefinite-lived:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
N/A
 
$
429,051

 
$

 
$
429,051

 
$
428,100

 
$

 
$
428,100

Amortizing:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
8
 
1,600

 
(50
)
 
1,550

 

 

 

Completed technology
13
 
73,900

 
(41,017
)
 
32,883

 
73,900

 
(35,486
)
 
38,414

Customer relationships
17
 
22,023

 
(7,250
)
 
14,773

 
19,666

 
(6,309
)
 
13,357

Licensing fees and other
11
 
32,384

 
(32,384
)
 

 
32,539

 
(31,176
)
 
1,363

Total intangible assets
 
 
$
558,958

 
$
(80,701
)
 
$
478,257

 
$
554,205

 
$
(72,971
)
 
$
481,234

Schedule of amortization expense related to identifiable intangible assets
Identifiable intangible asset amortization expense for each of the next five fiscal years and beyond is expected to be as follows:
(in thousands)
 
Year ending December 31,
 
2019
$
6,789

2020
6,446

2021
6,446

2022
6,446

2023
6,446

Thereafter
16,633

Total
$
49,206

v3.10.0.1
Product Warranty (Tables)
12 Months Ended
Dec. 31, 2018
Product Warranties Disclosures [Abstract]  
Schedule of warranty obligation for accrued warranty expense
The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Balance at beginning of period
$
3,823

 
$
3,526

 
$
3,345

Provision
5,909

 
5,801

 
6,200

Claims paid/costs incurred
(6,315
)
 
(5,653
)
 
(5,940
)
Foreign currency translation
(86
)
 
149

 
(79
)
Balance at end of period
$
3,331

 
$
3,823

 
$
3,526

v3.10.0.1
Debt and Financing Arrangements (Tables)
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Schedule of debt and long-term capital lease obligations
The Company’s debt and long-term capital lease obligations were as follows:
(in thousands)
December 31,
2018
 
December 31,
2017
Term loan A facility
$
330,469

 
$
351,563

Delayed draw term loan A facility
54,375

 
95,000

Revolving credit facility

 
10,066

Other short-term borrowings
920

 
10,298

Capital lease obligations

 
22

Debt issuance costs
(2,266
)
 
(2,896
)
Total
383,498

 
464,053

Less: short-term debt and current portion of long-term debt
36,545

 
47,083

Total long-term debt and capital lease obligations
$
346,953

 
$
416,970

Schedule of principal payments on outstanding long-term debt obligations
As of December 31, 2018, principal payments due on outstanding long-term debt obligations, excluding capital leases, were as follows:
(in thousands)
 
Year ending December 31,
 
2019
$
35,625

2020
38,594

2021
310,625

2022

2023

Thereafter

Total
$
384,844

v3.10.0.1
Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair values of hedge instruments on the consolidated balance sheets
The fair value of hedge instruments recognized on the consolidated balance sheets was as follows:
(in thousands)
 
 
 
December 31,
2018
 
December 31,
2017
Balance Sheet Location
 
Hedge Instrument Type
 
 
Other current assets
 
Foreign exchange forward
 
$
6,116

 
$
4,675

Other noncurrent assets
 
Foreign exchange forward
 
1,015

 
562

Accrued expenses and other liabilities
 
Foreign exchange forward
 
578

 
6,360

 
 
Interest rate swap
 
526

 

Other noncurrent liabilities
 
Foreign exchange forward
 
161

 
276

 
 
Interest rate swap
 
925

 

Schedule of hedge instruments included in accumulated other comprehensive loss
The hedge instrument gain (loss) recognized in accumulated other comprehensive loss, net of tax was as follows:
 
Gain (Loss) Recognized in
Other Comprehensive Loss
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Type of hedge
 
 
 
 
 
Foreign exchange forward
$
8,148

 
$
(15,558
)
 
$
7,014

Interest rate swap
(1,926
)
 

 

 
$
6,222

 
$
(15,558
)
 
$
7,014

 
Effect of hedge instruments in the consolidated statement of operations
The hedge instrument gain (loss) recognized on the consolidated statements of operations was as follows:
 
Gain (Loss) Recognized in
Statement of Operations
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Location of gain (loss) in statement of operations
 
 
 
 
 
Cost of goods sold
$
(1,410
)
 
$
1,329

 
$
5,194

Selling, general and administrative expense
1,665

 
(2,732
)
 
(917
)
Interest expense, net
(476
)
 

 

 
$
(221
)
 
$
(1,403
)
 
$
4,277

v3.10.0.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis were as follows:
 
Fair Value Measurements as of
 
 
 
December 31, 2018 using:
 
 
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Balance Sheet Location
Assets
 
 
 
 
 
 
 
Rabbi trust
$
8,415

 
$

 
$

 
Other current assets
Foreign exchange derivative instruments

 
6,116

 

 
Other current assets
Deferred compensation program assets
1,222

 

 

 
Other noncurrent assets
Foreign exchange derivative instruments

 
1,015

 

 
Other noncurrent assets
Total assets
$
9,637

 
$
7,131

 
$

 
 
Liabilities
 
 
 
 
 
 
 
Foreign exchange derivative instruments
$

 
$
578

 
$

 
Accrued expenses and other liabilities
Interest rate swap derivative instrument

 
526

 

 
Accrued expenses and other liabilities
Deferred compensation program liabilities
1,222

 

 

 
Other noncurrent liabilities
Foreign exchange derivative instruments

 
161

 

 
Other noncurrent liabilities
Interest rate swap derivative instrument

 
925

 

 
Other noncurrent liabilities
Total liabilities
$
1,222

 
$
2,190

 
$

 
 
 
Fair Value Measurements as of
 
 
 
December 31, 2017 using:
 
 
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Balance Sheet Location
Assets
 
 
 
 
 
 
 
Rabbi trust
$
10,637

 
$

 
$

 
Other current assets
Foreign exchange derivative instruments

 
4,675

 

 
Other current assets
Deferred compensation program assets
1,866

 

 

 
Other noncurrent assets
Foreign exchange derivative instruments

 
562

 

 
Other noncurrent assets
Total assets
$
12,503

 
$
5,237

 
$

 
 
Liabilities
 
 
 
 
 
 
 
Foreign exchange derivative instruments
$

 
$
6,360

 
$

 
Accrued expenses and other liabilities
Deferred compensation program liabilities
1,866

 

 

 
Other noncurrent liabilities
Foreign exchange derivative instruments

 
276

 

 
Other noncurrent liabilities
Total liabilities
$
1,866

 
$
6,636

 
$

 
 
v3.10.0.1
Pension and Other Postretirement Benefits (Tables)
12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Schedule of change in benefit obligation, change in plan assets and funded status
The following table presents the change in benefit obligation, change in plan assets and funded status for the Company's defined benefit and postretirement benefit plans for the year ended December 31, 2018:
(in thousands)
Pension
Benefits
(Underfunded)
 
Pension
Benefits
(Overfunded)
 
Postretirement
Benefits
Change in projected benefit obligation ("PBO")
 
 
 
 
 
Benefit obligation at December 31, 2017
$
316,882

 
$
35,468

 
$
16,052

Service cost
9,067

 

 
657

Interest cost
11,040

 
857

 
490

Actuarial gain
(22,436
)
 
(5,255
)
 
(1,600
)
Curtailments
(177
)
 

 

Settlements
(36,244
)
 
(3,507
)
 

Plan amendments

 
285

 

Participants’ contributions

 

 
378

Benefit payments
(2,990
)
 
(580
)
 
(1,565
)
Foreign currency translation
(321
)
 
(1,639
)
 

Projected benefit obligation at December 31, 2018
274,821

 
25,629

 
14,412

Accumulated benefit obligation at December 31, 2018
240,270

 
23,821

 
14,412

Change in plan assets

 

 
 
Fair value of plan assets at December 31, 2017
183,093

 
50,767

 

Return on plan assets
(11,863
)
 
(3,846
)
 

Employer contributions
44,105

 
441

 
1,187

Participants’ contributions

 

 
378

Settlements
(36,244
)
 
(3,507
)
 

Benefit payments
(2,990
)
 
(580
)
 
(1,565
)
Foreign currency translation
(57
)
 
(2,575
)
 

Fair value of plan assets at December 31, 2018
176,044

 
40,700

 

Funded status (fair value of plan assets less PBO)
$
(98,777
)
 
$
15,071

 
$
(14,412
)
The following table presents the change in benefit obligation, change in plan assets and funded status for the Company's defined benefit and postretirement benefit plans for the year ended December 31, 2017:
(in thousands)
Pension
Benefits
(Underfunded)
 
Pension
Benefits
(Overfunded)
 
Postretirement
Benefits
Change in projected benefit obligation
 
 
 
 
 
Benefit obligation at December 31, 2016
$
284,104

 
$
39,735

 
$
20,264

Service cost
9,217

 

 
955

Interest cost
10,783

 
1,049

 
713

Actuarial (gain) loss
34,557

 
(2,000
)
 
(5,075
)
Settlements
(20,663
)
 
(5,172
)
 

Participants’ contributions

 

 
355

Benefit payments
(2,719
)
 
(635
)
 
(1,160
)
Foreign currency translation
1,435

 
2,659

 

Adjustment for movement from underfunded to overfunded
168

 
(168
)
 

Projected benefit obligation at December 31, 2017
316,882

 
35,468

 
16,052

Accumulated benefit obligation at December 31, 2017
277,067

 
34,190

 
16,052

Change in plan assets

 

 

Fair value of plan assets at December 31, 2016
161,088

 
45,342

 

Return on plan assets
23,757

 
6,254

 

Employer contributions
21,280

 
1,697

 
805

Participants’ contributions

 

 
355

Settlements
(20,663
)
 
(5,172
)
 

Benefit payments
(2,719
)
 
(635
)
 
(1,160
)
Foreign currency translation
156

 
3,475

 

Adjustment for movement from underfunded to overfunded
194

 
(194
)
 

Fair value of plan assets at December 31, 2017
183,093

 
50,767

 

Funded status (fair value of plan assets less PBO)
$
(133,789
)
 
$
15,299

 
$
(16,052
)
Schedule of amount of pension and postretirement assets and liabilities recognized on consolidated balance sheets
The amount of pension and postretirement assets and liabilities recognized on the consolidated balance sheets was as follows:
 
Pension Benefits
 
Postretirement Benefits
 
December 31, 
 
December 31, 
(in thousands)
2018
 
2017
 
2018
 
2017
Other noncurrent assets
$
15,071

 
$
15,299

 
$

 
$

Accrued compensation and benefits
(10,391
)
 
(18,933
)
 
(721
)
 
(748
)
Accrued pension and other postretirement benefits
(88,386
)
 
(114,856
)
 
(13,691
)
 
(15,304
)
Net liability recognized
$
(83,706
)
 
$
(118,490
)
 
$
(14,412
)
 
$
(16,052
)
Schedule of amount in accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost
The amounts in accumulated other comprehensive loss, net of tax on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Year ended December 31, 
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Net actuarial gain (loss) at beginning of year
$
(44,892
)
 
$
(33,736
)
 
$
(18,374
)
 
$
12,392

 
$
8,055

 
$
8,840

Actuarial gain (loss)
(882
)
 
(14,554
)
 
(18,425
)
 
1,600

 
5,075

 
573

Prior service cost
(285
)
 

 

 

 

 
(283
)
Curtailment impact
(97
)
 

 

 

 

 

Settlement impact
4,982

 
2,740

 
1,124

 

 

 

Amortization of actuarial (gain) loss
1,687

 
804

 
485

 
(1,540
)
 
(601
)
 
(912
)
Amortization of prior service cost (credit)
175

 
175

 
175

 
(137
)
 
(137
)
 
(163
)
Foreign currency translation
187

 
(321
)
 
1,279

 

 

 

Net actuarial gain (loss) at end of year
$
(39,125
)
 
$
(44,892
)
 
$
(33,736
)
 
$
12,315

 
$
12,392

 
$
8,055

Schedule of components of net periodic benefit cost
Components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
9,067

 
$
9,217

 
$
9,763

 
$
657

 
$
955

 
$
888

Interest cost
11,897

 
11,832

 
12,356

 
490

 
713

 
779

Expected return on plan assets
(13,041
)
 
(12,006
)
 
(12,189
)
 

 

 

Curtailment income
(97
)
 

 

 

 

 

Settlement expense
4,982

 
2,740

 
1,148

 

 

 

Amortization of net (gain) loss
1,687

 
804

 
471

 
(1,540
)
 
(601
)
 
(912
)
Amortization of prior service cost (credit)
175

 
175

 
175

 
(137
)
 
(137
)
 
(163
)
Net periodic benefit cost (credit)
$
14,670

 
$
12,762

 
$
11,724

 
$
(530
)
 
$
930

 
$
592

Schedule of weighted average assumptions used to determine future benefit obligations and net periodic benefit cost
The weighted average assumptions used to determine benefit obligations at December 31, 2018 and 2017 were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
Discount rate
4.25
%
 
3.62
%
 
4.27
%
 
3.61
%
Rate of compensation increase
4.00
%
 
4.01
%
 
N/A

 
N/A

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2018, 2017 and 2016 were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Discount rate
3.62
%
 
4.17
%
 
4.16
%
 
3.61
%
 
4.08
%
 
4.30
%
Expected long-term rate of return on plan assets
5.77
%
 
5.77
%
 
6.23
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
4.01
%
 
4.02
%
 
4.07
%
 
N/A

 
N/A

 
N/A

Schedule of assumed healthcare cost trend rates used to determine benefit obligations and net cost
The assumed healthcare cost trend rates used to determine benefit obligations and net periodic benefit cost for postretirement benefits as of and for the years ended December 31, 2018, 2017 and 2016 were as follows:
 
2018
 
2017
 
2016
Healthcare cost trend rate assumed for next year
6.25%/9.00%

 
5.50%/8.50%

 
5.50%/9.00%

Rate that the cost trend rate is assumed to decline
(the ultimate trend rate)
4.50
%
 
4.50
%
 
4.50
%
Year that the rate reaches the ultimate trend rate
2027

 
2024

 
2024

Schedule of one-percentage-point change in assumed healthcare cost trend rates
A one-percentage-point change in assumed healthcare cost trend rates would have the following effects:
 
2018
 
2017
(in thousands)
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
 
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
Effect on total of service cost and interest cost
$
72

 
$
(64
)
 
$
73

 
$
(65
)
Effect on projected benefit obligation
632

 
(572
)
 
665

 
(598
)
Schedule of pension assets by major category of plan assets and type of fair value measurement
Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2018 were as follows:
(in thousands)
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Asset category
 
 
 
 
 
 
 
Individual securities
 
 
 
 
 
 
 
Fixed income
$
1,682

 
$

 
$
1,682

 
$

Commingled funds
 
 
 
 
 
 
 
Measured at net asset value
215,062

 

 

 

 
$
216,744

 
$

 
$
1,682

 
$

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2017 were as follows:
(in thousands)
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Asset category
 
 
 
 
 
 
 
Individual securities
 
 
 
 
 
 
 
Fixed income
$
1,794

 
$

 
$
1,794

 
$

Commingled funds
 
 
 
 
 
 
 
Measured at net asset value
232,066

 

 

 

 
$
233,860

 
$

 
$
1,794

 
$

Schedule of estimated future retirement benefit payments
The following retirement benefit payments, which reflect expected future service, are expected to be paid as follows:
(in thousands)
Pension
Benefits
 
Postretirement
Benefits
Year ending December 31,
 
 
 
2019
$
28,898

 
$
721

2020
18,536

 
849

2021
20,064

 
1,007

2022
20,266

 
1,138

2023
23,730

 
1,210

Thereafter
125,482

 
7,180

 
$
236,976

 
$
12,105

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of components of income before income taxes
The components of income before income taxes were as follows:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Domestic operations
$
54,003

 
$
61,158

 
$
(3,995
)
Foreign operations
96,301

 
90,518

 
93,217

Income before income taxes
$
150,304

 
$
151,676

 
$
89,222

Schedule of reconciliation of income taxes
The following table represents a reconciliation of income taxes computed at the federal statutory income tax rate of 21% for 2018 and 35% for 2017 and 2016 to income tax expense as reported:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Income tax expense computed at federal statutory income tax rate
$
31,564

 
$
53,086

 
$
31,229

Foreign taxes, net of credits
12,138

 
(15,545
)
 
(1,804
)
Impact of the 2017 Tax Act
10,801

 
12,619

 

Net adjustments for uncertain tax positions
771

 
508

 
706

State and local taxes
2,349

 
1,313

 
(525
)
Equity appreciation rights

 
(765
)
 
372

Transaction costs

 
189

 
3,078

Indemnified taxes
144

 
(115
)
 
1,594

Fair value adjustment for common stock warrants

 

 
3,029

Valuation allowance
(10,038
)
 
90

 
955

Deferred charge
1,178

 
(1,295
)
 
1,009

Tax credits
(3,225
)
 
(3,240
)
 
(704
)
Miscellaneous other, net
1,550

 
1,630

 
768

Income tax expense as reported
$
47,232

 
$
48,475

 
$
39,707

Effective income tax rate
31.4
%
 
32.0
%
 
44.5
%
Schedule of reconciliation of activity related to unrecognized tax benefits, excluding accrued interest and penalties
The following table represents a reconciliation of the activity related to the unrecognized tax benefits, excluding accrued interest and penalties:
(in thousands)
2018
 
2017
 
2016
Unrecognized tax benefits at beginning of year
$
11,049

 
$
11,347

 
$
13,120

Gross additions - prior year tax positions

 

 
1,960

Gross additions - current year tax positions
801

 
1,159

 
747

Gross reductions - prior year tax positions
(91
)
 
(348
)
 
(4,457
)
Gross reductions - Acquired tax positions settled with tax authorities
(113
)
 
(1,241
)
 

Impact of change in foreign exchange rates

 
132

 
(23
)
Unrecognized tax benefits at end of year
$
11,646

 
$
11,049

 
$
11,347

Schedule of income tax expense
Income tax expense was as follows:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Current expense (benefit)
 
 
 
 
 
United States
$
1,795

 
$
(906
)
 
$
3,702

Foreign
29,896

 
28,109

 
28,156

Current income tax expense
31,691

 
27,203

 
31,858

Deferred expense (benefit)
 
 
 
 
 
United States
16,222

 
21,189

 
9,489

Foreign
(681
)
 
83

 
(1,640
)
Deferred income tax expense
15,541

 
21,272

 
7,849

Total income tax expense
$
47,232

 
$
48,475

 
$
39,707

Schedule of components of net deferred tax assets (liabilities)
The components of net deferred tax assets (liabilities) were as follows:
 
December 31, 
(in thousands)
2018
 
2017
Deferred tax assets
 
 
 
Compensation and benefits
$
14,036

 
$
14,060

Share-based compensation
7,446

 
5,085

Pension and other postretirement benefits
22,285

 
30,564

Inventories
11,505

 
10,843

R&D capitalization
6,449

 

Accounts receivable
1,101

 
2,016

Customer sales incentives
1,902

 
2,255

Transaction costs
1,580

 
1,804

Other reserves
3,987

 
3,255

Interest
771

 
562

Miscellaneous
1,871

 
1,224

Foreign exchange derivative instruments

 
730

Net operating loss and other tax carryforwards
80,776

 
103,455

Gross deferred tax assets
153,709

 
175,853

Valuation allowance
(15,542
)
 
(25,579
)
Total deferred tax assets
138,167

 
150,274

Deferred tax liabilities
 
 
 
Property, plant and equipment
(8,057
)
 
(11,325
)
Identifiable intangible assets
(54,571
)
 
(47,876
)
Foreign exchange derivative instruments
(1,176
)
 

Miscellaneous
(970
)
 
(954
)
Total deferred tax liabilities
(64,774
)
 
(60,155
)
Net deferred tax asset
$
73,393

 
$
90,119

Schedule of changes in valuation allowance for deferred tax assets
Changes in the valuation allowance for deferred tax assets were as follows:
 
Year ended December 31, 
(in thousands)
2018
 
2017
 
2016
Valuation allowance at beginning of year
$
25,579

 
$
21,726

 
$
20,771

Increases (decreases) recorded to income tax provision
(10,037
)
 
3,853

 
955

Valuation allowance at end of year
$
15,542

 
$
25,579

 
$
21,726

v3.10.0.1
Common Stock (Tables)
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Schedule of declared dividends per share
The Company declared dividends per common share, including DERs (Note 17), during the periods presented as follows:
 
Dividends
per Common Share
 
Amounts
(in
thousands)
2018:
 

 
Fourth Quarter
$
0.13


$
9,968

Third Quarter
0.13


9,954

Second Quarter
0.13


9,917

First Quarter
0.13


9,917

Total dividends declared in 2018
$
0.52


$
39,756

 
 
 
 
2017:
 

 
 

Fourth Quarter
$
0.12

 
$
9,098

Third Quarter
0.12

 
9,146

Second Quarter
0.12

 
9,149

First Quarter
0.12

 
9,152

Total dividends declared in 2017
$
0.48

 
$
36,545

v3.10.0.1
Equity Incentive Plans (Tables)
12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of summary of the Company’s restricted and performance stock units
A summary of the Company’s RSUs and PSUs as of December 31, 2018 and 2017 and changes during the years then ended is presented below: 
 
Number
of
RSUs and PSUs

Weighted-
Average
Fair
Value
Outstanding at December 31, 2016
2,459,166


$
20.40

Granted
238,196


18.82

Vested
(437,188
)

20.33

Forfeited
(199,320
)

20.45

Outstanding at December 31, 2017
2,060,854


$
20.23

Granted
473,724


23.49

Vested (1)
(1,367,060
)

20.36

Forfeited
(285,686
)

20.29

Outstanding at December 31, 2018
881,832


$
21.75


(1)
Included 63,490 shares of common stock related to RSUs and 900,226 shares of common stock related to PSUs that were not delivered as of December 31, 2018.
Schedule of the allocation of share-based compensation expense
The allocation of compensation expense related to equity incentive plans in the consolidated statement of operations was as follows:
 
Year ended December 31,
(in thousands)
2018

2017

2016
Cost of goods sold
$
680


$
408


$
434

Selling, general and administrative expense
16,507


13,687


18,622

Research and development
1,376


1,190


1,485

Total compensation expense before income tax
18,563


15,285


20,541

Income tax benefit
4,398


3,158


6,481

Total compensation expense, net of tax
$
14,165


$
12,127


$
14,060

Compensation expense recorded related to RSUs and PSUs in the consolidated statement of operations was as follows:
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
RSU
$
12,353

 
$
9,318

 
$
8,361

PSU
6,210

 
5,967

 
6,133

Schedule of the company's EAR activity
The following table summarizes the Company's EAR activity since December 31, 2016:
(in thousands, except share and per share amounts)
Number
of
Awards
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual Term
 
Aggregate
Intrinsic
Value
Outstanding at December 31, 2016
7,614,000

 
$
19.90

 

 
$
151,511

Settled
(7,614,000
)
 
(19.90
)
 
 
 

Outstanding at December 31, 2017

 


 
 
 

v3.10.0.1
Accumulated Other Comprehensive Loss, Net of Tax (Tables)
12 Months Ended
Dec. 31, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Schedule of changes in each component of accumulated comprehensive loss, net of tax effects
The components of and changes in accumulated other comprehensive loss, net of tax, were as follows:
(in thousands)
Foreign
Currency
Translation
Adjustments
 
Gains (Losses) on
Cash Flow
Derivative
Instruments
 
Gains
on Available-
for-Sale
Securities
 
Pension and
Other
Postretirement
Adjustments
 
Accumulated
Other
Comprehensive
Loss
Balances at December 31, 2016
$
(84,675
)
 
$
10,535

 
$
1,536

 
$
(18,230
)
 
$
(90,834
)
Other comprehensive income (loss) before reclassifications
26,964

 
(15,558
)
 
150

 
(9,870
)
 
1,686

Amounts reclassified from accumulated other comprehensive loss

 
(1,329
)
 

 
2,981

 
1,652

Tax benefit

 
4,072

 
35

 
1,698

 
5,805

Balances at December 31, 2017
$
(57,711
)
 
$
(2,280
)
 
$
1,721

 
$
(23,421
)
 
$
(81,691
)
Adoption of new accounting standards (Notes 2 & 14)
(2,171
)
 

 
(1,721
)
 
(2,240
)
 
(6,132
)
Other comprehensive income (loss) before reclassifications
(11,971
)
 
6,222

 

 
620

 
(5,129
)
Amounts reclassified from accumulated other comprehensive loss, net of tax

 
1,886

 

 
5,070

 
6,956

Tax expense

 
(1,668
)
 

 
(1,375
)
 
(3,043
)
Balances at December 31, 2018
$
(71,853
)
 
$
4,160

 
$

 
$
(21,346
)
 
$
(89,039
)
 
v3.10.0.1
Interest Expense, Net and Other Expense, Net (Tables)
12 Months Ended
Dec. 31, 2018
Interest Expense and Other (Income) Expense, Net  
Schedule of components of interest expense, net
The components of interest expense, net were as follows:
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Related party interest expense
$

 
$

 
$
28,146

Third party interest expense
19,171

 
16,907

 
23,113

Loss on interest rate swap
476

 

 

Third party interest income
(1,245
)
 
(1,198
)
 
(1,351
)
Total interest expense, net
$
18,402

 
$
15,709

 
$
49,908

Schedule of components of other expense, net
The components of other expense, net were as follows:
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Loss on fair value of common stock warrants
$

 
$

 
$
6,112

Indemnification (gains) losses
(258
)
 
177

 
(2,174
)
Non-service cost component of net periodic benefit cost
4,416

 
3,520

 
1,665

Other income
(529
)
 
(1,254
)
 
(2,232
)
Total other expense, net
$
3,629

 
$
2,443

 
$
3,371

v3.10.0.1
Net Income per Common Share (Tables)
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Schedule of computation of basic and diluted net income per common share
The following is a computation of basic and diluted net income per common share attributable to Acushnet Holdings Corp.:
 
Year ended December 31,
(in thousands, except share and per share amounts)
2018
 
2017
 
2016
Net income attributable to Acushnet Holdings Corp.
$
99,872

 
$
98,695

 
$
45,012

Less: dividends earned by preferred shareholders

 

 
(11,576
)
Less: allocation of undistributed earnings to preferred shareholders

 

 
(10,247
)
Net income attributable to common stockholders - basic
99,872

 
98,695

 
23,189

Adjustments to net income for dilutive securities

 

 
16,475

Net income attributable to common stockholders - diluted
$
99,872

 
$
98,695

 
$
39,664

Weighted average number of common shares:
 
 
 
 
 
Basic
74,766,176

 
74,399,836

 
31,247,643

Diluted
75,472,342

 
74,590,999

 
64,323,742

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
Basic
$
1.34

 
$
1.33

 
$
0.74

Diluted
$
1.32

 
$
1.32

 
$
0.62

Schedule of securities excluded from the calculation of diluted weighted average common shares.
The following securities have been excluded from the calculation of diluted weighted‑average common shares outstanding as their impact was determined to be anti‑dilutive:
 
Year ended December 31,
 
2018
 
2017
 
2016
Series A preferred stock

 

 
13,807,486

Warrants to purchase common stock

 

 
1,807,171

RSUs
13,885

 
360,659

 

v3.10.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Schedule of information by reportable segment and a reconciliation to reported amounts
Information by reportable segment and a reconciliation to reported amounts are as follows:
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Net sales
 
 
 
 
 
Titleist golf balls
$
523,967

 
$
512,041

 
$
513,899

Titleist golf clubs
445,341

 
397,987

 
430,966

Titleist golf gear
146,067

 
142,911

 
136,208

FootJoy golf wear
439,681

 
437,455

 
433,061

Other
78,665

 
69,864

 
58,141

Total net sales
$
1,633,721

 
$
1,560,258

 
$
1,572,275

Segment operating income
 
 
 
 
 
Titleist golf balls
$
78,973

 
$
78,419

 
$
76,954

Titleist golf clubs
45,156

 
32,084

 
51,003

Titleist golf gear
15,430

 
16,803

 
12,212

FootJoy golf wear
17,974

 
27,038

 
19,305

Other
15,560

 
14,904

 
7,324

Total segment operating income
173,093

 
169,248

 
166,798

Reconciling items:
 
 
 
 
 
Interest expense, net
(18,402
)
 
(15,709
)
 
(49,908
)
Non-service cost component of net periodic benefit cost
(4,416
)
 
(3,520
)
 
(1,665
)
EAR expense

 

 
(6,047
)
Loss on fair value of common stock warrants

 

 
(6,112
)
Transaction fees
(599
)
 
(686
)
 
(16,817
)
Other
628

 
2,343

 
2,973

Total income before income tax
$
150,304

 
$
151,676

 
$
89,222

Depreciation and amortization expense by reportable segment
Depreciation and amortization expense by reportable segment are as follows:
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Depreciation and amortization
 
 
 
 
 
Titleist golf balls
$
24,155

 
$
25,545

 
$
26,104

Titleist golf clubs
7,408

 
7,233

 
7,021

Titleist golf gear
1,531

 
1,425

 
1,250

FootJoy golf wear
6,731

 
6,058

 
5,759

Other
671

 
610

 
700

Total depreciation and amortization
$
40,496

 
$
40,871

 
$
40,834


Schedule of information as to the Company's operations in different geographical areas. Net sales are categorized based on the location in which the sale originates. Long-lived assets (property, plant and equipment) are categorized based on their location of domicile.
Information as to the Company’s operations in different geographical areas is presented below. Net sales are categorized based on the location in which the sale originates.
 
Year ended  December 31,
(in thousands)
2018
 
2017
 
2016
Net sales
 
 
 
 
 
United States
$
826,111

 
$
789,879

 
$
804,516

EMEA (1)
219,803

 
205,200

 
210,088

Japan
199,107

 
201,264

 
219,021

Korea
221,146

 
200,394

 
175,956

Rest of world
167,554

 
163,521

 
162,694

Total net sales
$
1,633,721

 
$
1,560,258

 
$
1,572,275

___________________________________
(1) Europe, the Middle East and Africa (“EMEA”)
Long-lived assets (property, plant and equipment) are categorized based on their location of domicile.
 
Year ended December 31,
(in thousands)
2018
 
2017
Long-lived assets
 
 
 
United States
$
146,596

 
$
148,678

EMEA
9,472

 
9,669

Japan
764

 
770

Korea
5,682

 
3,782

Rest of world (2)
65,874

 
66,023

Total long-lived assets
$
228,388

 
$
228,922

___________________________________
(2)
Includes manufacturing facilities in Thailand with long lived assets of $52.2 million and $53.8 million as of December 31, 2018 and 2017, respectively.
v3.10.0.1
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Schedule of purchase obligations
Purchase obligations by the Company as of December 31, 2018 were as follows:
 
Payments Due by Period
(in thousands)
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
Purchase obligations
$
151,463

 
$
18,804

 
$
6,113

 
$
1,850

 
$
1,391

 
$
4,804

Schedule of future minimum rental payments under noncancelable operating leases
Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows:
(in thousands)
 
Year ending December 31,
 
2019
$
13,119

2020
11,053

2021
7,984

2022
5,345

2023
3,133

Thereafter
13,852

Total minimum rental payments
$
54,486

v3.10.0.1
Unaudited Quarterly Financial Data (Tables)
12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Tabular disclosures of summary of quarterly results
The tables below summarize quarterly results for fiscal 2018:
 
Quarter ended (unaudited)
(in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
2018
 
 
 
 
 
 
 
Net sales
$
343,355

 
$
370,427

 
$
478,138

 
$
441,801

Gross profit
174,929

 
188,938

 
250,810

 
227,674

Income from operations
19,599

 
25,873

 
64,579

 
62,284

Net income
12,264

 
7,349

 
40,369

 
43,090

Net income attributable to Acushnet Holdings Corp.
11,418

 
7,063

 
39,907

 
41,484

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
 
 
Basic
$
0.15

 
$
0.09

 
$
0.53

 
$
0.56

Diluted
$
0.15

 
$
0.09

 
$
0.53

 
$
0.55

 
The tables below summarize quarterly results for fiscal 2017:
 
Quarter ended (unaudited)
(in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
2017
 
 
 
 
 
 
 
Net sales
$
351,392

 
$
347,263

 
$
427,988

 
$
433,615

Gross profit
179,372

 
173,104

 
222,966

 
226,415

Income from operations
28,282

 
19,180

 
57,892

 
64,474

Net income
18,899

 
10,634

 
34,038

 
39,630

Net income attributable to Acushnet Holdings Corp.
18,247

 
9,318

 
33,016

 
38,114

Net income per common share attributable to Acushnet Holdings Corp.:
 
 
 
 
 
 
 
Basic
$
0.25

 
$
0.13

 
$
0.44

 
$
0.51

Diluted
$
0.24

 
$
0.12

 
$
0.44

 
$
0.51

v3.10.0.1
Description of Business (Details)
Nov. 02, 2016
$ / shares
shares
Oct. 14, 2016
Class of Stock, Common    
Initial public offering    
Shares converted (in shares) 11,556,495  
Debt converted (in shares) 22,791,852  
Stock split   9
Initial public offering | Class of Stock, Common    
Initial public offering    
Shares issued (in shares) 19,333,333  
Share price (in dollars per share) | $ / shares $ 17  
Over-allotment option | Class of Stock, Common    
Initial public offering    
Shares issued (in shares) 2,899,999  
Share price (in dollars per share) | $ / shares $ 17  
Convertible debt    
Initial public offering    
Interest rate (as a percent) 7.50%  
Magnus | Class of Stock, Common    
Initial public offering    
Shares purchased by Magnus (in shares) 14,818,720  
v3.10.0.1
Summary of Significant Accounting Policies (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Jan. 01, 2019
Jan. 01, 2018
Dec. 31, 2015
Basis of Presentation                            
Decrease in income tax expense                 $ (47,232,000) $ (48,475,000) $ (39,707,000)      
Increase in net income $ 12,264,000 $ 7,349,000 $ 40,369,000 $ 43,090,000 $ 18,899,000 $ 10,634,000 $ 34,038,000 $ 39,630,000 103,072,000 103,201,000 49,515,000      
Increase in comprehensive income                 $ 101,856,000 $ 112,344,000 $ 25,915,000      
Increase in basic net income per common share (in dollars per share) $ 0.15 $ 0.09 $ 0.53 $ 0.56 $ 0.25 $ 0.13 $ 0.44 $ 0.51 $ 1.34 $ 1.33 $ 0.74      
Increase in diluted net income per common share (in dollars per share) $ 0.15 $ 0.09 $ 0.53 $ 0.55 $ 0.24 $ 0.12 $ 0.44 $ 0.51 $ 1.32 $ 1.32 $ 0.62      
Decrease in deferred income tax assets $ (78,028,000)       $ (99,437,000)       $ (78,028,000) $ (99,437,000)        
Increase in goodwill 209,671,000       203,403,000       209,671,000 203,403,000 $ 196,703,000      
Increase in total assets 1,691,621,000       1,733,905,000       1,691,621,000 1,733,905,000        
Increase in total shareholders' equity 926,984,000       853,973,000       926,984,000 853,973,000 768,823,000     $ 193,506,000
Cash and Restricted Cash                            
Restricted cash 2,000,000       2,300,000       2,000,000 2,300,000        
Goodwill and Indefinite-Lived Intangible Assets                            
Impairment of goodwill                 0 0 0      
impairment of indefinite-lived intangible assets                 0 0 0      
Selling                            
Shipping and handling costs included in selling expenses                 611,883,000 578,289,000 600,092,000      
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]                            
Adjustment for new accounting standards                         $ (1,501,000)  
Non-service cost component of net periodic benefit cost                 4,416,000 3,520,000 1,665,000      
Accounting Standards Update 2017-07                            
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]                            
Non-service cost component of net periodic benefit cost                   3,500,000 1,700,000      
Accumulated Other Comprehensive Loss                            
Basis of Presentation                            
Increase in total shareholders' equity (89,039,000)       (81,691,000)       (89,039,000) (81,691,000) (90,834,000)     (67,234,000)
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]                            
Adjustment for new accounting standards                         (6,132,000)  
Accumulated Other Comprehensive Loss | Accounting Standards Update 2016-01                            
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]                            
Adjustment for new accounting standards                         (2,100,000)  
Retained Earnings (Deficit)                            
Basis of Presentation                            
Increase in net income                 99,872,000 98,695,000 45,012,000      
Increase in total shareholders' equity 72,946,000       8,199,000       72,946,000 8,199,000 (53,951,000)     $ (81,647,000)
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]                            
Adjustment for new accounting standards                         4,631,000  
Retained Earnings (Deficit) | Accounting Standards Update 2016-01                            
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]                            
Adjustment for new accounting standards                         $ 2,100,000  
Shipping and Handling                            
Selling                            
Shipping and handling costs included in selling expenses                 34,100,000 32,500,000 32,400,000      
Selling, general and administrative                            
Advertising and Promotion                            
Advertising and promotional expense                 192,200,000 192,700,000 196,000,000      
Foreign currency translation and transactions                            
Transaction gain (loss) included in selling, general and administrative expense                 $ (1,900,000) 4,100,000 1,200,000      
Minimum                            
Product Warranty                            
Product warranty duration                 1 year          
Minimum | Accounting Standards Update 2016-02 | Scenario, Forecast | Subsequent Event                            
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]                            
Right-of-use asset                       $ 40,000,000    
Lease liabilities                       40,000,000    
Maximum                            
Product Warranty                            
Product warranty duration                 2 years          
Maximum | Accounting Standards Update 2016-02 | Scenario, Forecast | Subsequent Event                            
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]                            
Right-of-use asset                       50,000,000    
Lease liabilities                       $ 50,000,000    
Deposits                            
Concentration of Credit Risk and of Significant Customers                            
Concentration risk, amount in banks located outside the United States 28,600,000       44,700,000       $ 28,600,000 44,700,000        
Accounts payable                            
Cash and Restricted Cash                            
Book overdrafts 2,200,000       2,900,000       2,200,000 2,900,000        
VIE                            
Basis of Presentation                            
Increase in goodwill 32,312,000       32,312,000       $ 32,312,000 32,312,000        
Variable interest entities                            
Ownership percentage                 40.00%          
Outstanding balance $ 0       0       $ 0 0        
Restatement Adjustment                            
Basis of Presentation                            
Decrease in income tax expense         6,600,000         6,600,000        
Increase in net income         $ 6,600,000         6,600,000        
Increase in comprehensive income                   $ 6,600,000        
Increase in basic net income per common share (in dollars per share)         $ 0.09         $ 0.09        
Increase in diluted net income per common share (in dollars per share)         $ 0.08         $ 0.09        
Decrease in deferred income tax assets         $ 10,900,000         $ 10,900,000 17,500,000      
Increase in goodwill         17,500,000         17,500,000 $ 17,500,000      
Increase in total assets         6,600,000         6,600,000        
Increase in total shareholders' equity         $ 6,600,000         $ 6,600,000        
v3.10.0.1
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details)
12 Months Ended
Dec. 31, 2018
Minimum  
Property, Plant and Equipment [Line Items]  
Weighted average useful life 3 years
Maximum  
Property, Plant and Equipment [Line Items]  
Weighted average useful life 10 years
Buildings and improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 15 years
Buildings and improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 40 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 3 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 10 years
Furniture, fixtures and computer hardware | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 3 years
Furniture, fixtures and computer hardware | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 10 years
Computer software | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 1 year
Computer software | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of property, plant and equipment 10 years
v3.10.0.1
Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Net reduction to opening retained earnings $ (72,946) $ (8,199)  
Increase in net sales 1,633,721 1,560,258 $ 1,572,275
Increase in cost of sales $ 791,370 758,401 $ 773,275
Period over which revenue is generally recognized for customer sales incentives (within) 1 year    
Minimum      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Term of majority of contracts 30 days    
Maximum      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Term of majority of contracts 60 days    
Term of contract 1 year    
Accounting Standards Update 2014-09      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Refund liability for expected returns $ 9,800 13,500  
Inventory expected to be recovered related to sales returns 5,700 4,300  
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance in Effect Before and After Topic 606      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Net reduction to opening retained earnings   $ 1,600  
Increase in net sales 4,300    
Increase in cost of sales $ 2,300    
v3.10.0.1
Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of year $ 9,975 $ 12,255 $ 12,363
Bad debt expense (583) 337 6,507
Amount of receivables written off (1,873) (3,300) (6,315)
Foreign currency translation (247) 683 (300)
Balance at end of year $ 7,272 $ 9,975 $ 12,255
v3.10.0.1
Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 71,068 $ 72,342
Work-in-process 21,763 23,956
Finished goods 268,376 267,664
Inventories $ 361,207 $ 363,962
v3.10.0.1
Property, Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment, Net      
Property, plant and equipment, gross $ 436,256 $ 409,292  
Accumulated depreciation and amortization (207,868) (180,370)  
Property, plant and equipment, net 228,388 228,922  
Software development cost capitalized      
Software development cost capitalized 4,100 3,100 $ 8,200
Depreciation and amortization      
Amortization expense, capitalized software and development 6,300 6,400 5,800
Total depreciation and amortization expense 40,496 40,871 40,834
Property, plant and equipment      
Depreciation and amortization      
Total depreciation and amortization expense 32,200 31,600 31,500
Land      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 14,515 14,618  
Buildings and improvements      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 142,113 138,570  
Machinery and equipment      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 160,707 148,999  
Furniture, computers and equipment      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 36,405 32,783  
Computer software      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 62,517 60,736  
Construction in progress      
Property, Plant and Equipment, Net      
Property, plant and equipment, gross 19,999 13,586  
Software development cost capitalized      
Software development cost capitalized 2,400 700 800
Software placed into service      
Software development cost capitalized      
Software development cost capitalized $ 1,700 $ 2,400 $ 7,400
v3.10.0.1
Goodwill and Identifiable Intangible Assets, Net - Net carrying value & reportable segments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Net carrying value of goodwill    
Balances at beginning of year $ 203,403 $ 196,703
Acquisitions (Note 22) 9,563  
Foreign currency translation (3,295) 6,700
Balances at end of year 209,671 203,403
Titleist golf balls    
Net carrying value of goodwill    
Balances at beginning of year 119,634 115,693
Acquisitions (Note 22) 8,492  
Foreign currency translation (1,931) 3,941
Balances at end of year 126,195 119,634
Titleist golf clubs    
Net carrying value of goodwill    
Balances at beginning of year 58,101 56,187
Acquisitions (Note 22) 0  
Foreign currency translation (949) 1,914
Balances at end of year 57,152 58,101
Titleist golf gear    
Net carrying value of goodwill    
Balances at beginning of year 14,088 13,624
Acquisitions (Note 22) 0  
Foreign currency translation (222) 464
Balances at end of year 13,866 14,088
FootJoy golf wear    
Net carrying value of goodwill    
Balances at beginning of year 2,585 2,500
Acquisitions (Note 22) 1,071  
Foreign currency translation (43) 85
Balances at end of year 3,613 2,585
Other    
Net carrying value of goodwill    
Balances at beginning of year 8,995 8,699
Acquisitions (Note 22) 0  
Foreign currency translation (150) 296
Balances at end of year $ 8,845 $ 8,995
v3.10.0.1
Goodwill and Identifiable Intangible Assets, Net - Net Carrying Value by Class (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Accumulated Amortization $ (80,701,000) $ (72,971,000)  
Total 49,206,000    
Intangible assets, Gross 558,958,000 554,205,000  
Intangible assets, Net book value 478,257,000 481,234,000  
Impairment of goodwill 0 0 $ 0
Impairment charges to indefinite-lived intangible assets 0 0 0
Amortization of identifiable intangible assets $ 8,000,000 9,300,000 9,300,000
Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Weighted Average Useful Life (Years) 8 years    
Finite lived intangible assets, Gross $ 1,600,000 0  
Accumulated Amortization (50,000) 0  
Total 1,550,000 0  
Additions to identifiable intangible assets as a result of acquisitions $ 1,600,000    
Completed technology      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Weighted Average Useful Life (Years) 13 years    
Finite lived intangible assets, Gross $ 73,900,000 73,900,000  
Accumulated Amortization (41,017,000) (35,486,000)  
Total $ 32,883,000 38,414,000  
Customer relationships      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Weighted Average Useful Life (Years) 17 years    
Finite lived intangible assets, Gross $ 22,023,000 19,666,000  
Accumulated Amortization (7,250,000) (6,309,000)  
Total 14,773,000 13,357,000  
Additions to identifiable intangible assets as a result of acquisitions $ 2,700,000    
Licensing fees and other      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Weighted Average Useful Life (Years) 11 years    
Finite lived intangible assets, Gross $ 32,384,000 32,539,000  
Accumulated Amortization (32,384,000) (31,176,000)  
Total 0 1,363,000  
Licensing fees and other | Cost of goods sold      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Amortization of identifiable intangible assets 1,400,000 2,700,000 $ 2,700,000
Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Indefinite lived intangible assets 429,051,000 $ 428,100,000  
Additions to identifiable intangible assets as a result of acquisitions $ 1,000,000    
v3.10.0.1
Goodwill and Identifiable Intangible Assets, Net - Class of identifiable intangible assets (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Amortization expense related to intangible assets  
2019 $ 6,789
2020 6,446
2021 6,446
2022 6,446
2023 6,446
Thereafter 16,633
Total $ 49,206
v3.10.0.1
Product Warranty (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Activity for accrued warranty expense      
Balance at beginning of period $ 3,823 $ 3,526 $ 3,345
Provision 5,909 5,801 6,200
Claims paid/costs incurred (6,315) (5,653) (5,940)
Foreign currency translation (86) 149 (79)
Balance at end of period $ 3,331 $ 3,823 $ 3,526
v3.10.0.1
Related Party Transactions (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Related Party Transaction [Line Items]      
Related party interest expense $ 0 $ 0 $ 28,146
Other current assets      
Related Party Transaction [Line Items]      
Receivables from related party   $ 500  
v3.10.0.1
Debt and Financing Arrangements - Schedule of debt and financing arrangements (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Jun. 07, 2018
Dec. 31, 2017
Debt and financing arrangements      
Other short-term borrowings $ 920   $ 10,298
Capital lease obligations 0   22
Debt issuance costs (2,266)   (2,896)
Total 383,498   464,053
Less: short-term debt and current portion of long-term debt 36,545   47,083
Long-term debt and capital lease obligations 346,953   416,970
Term loan A facility      
Debt and financing arrangements      
Long-term debt, gross 330,469   351,563
Delayed draw term loan A facility      
Debt and financing arrangements      
Long-term debt, gross 54,375   95,000
Revolving credit facility      
Debt and financing arrangements      
Long-term debt, gross $ 0   $ 10,066
Debt issuance costs   $ (400)  
v3.10.0.1
Debt and Financing Arrangements - Senior Secured Credit Facility (Details)
3 Months Ended 12 Months Ended
Jun. 07, 2018
USD ($)
Sep. 22, 2017
KRW (₩)
Jul. 28, 2016
USD ($)
Jul. 28, 2016
CAD ($)
Apr. 27, 2016
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
shares
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Aug. 09, 2017
USD ($)
Aug. 09, 2017
CAD ($)
Aug. 09, 2017
GBP (£)
Apr. 27, 2016
CAD ($)
Apr. 27, 2016
GBP (£)
Line of Credit Facility [Line Items]                            
Cash on hand     $ 23,600,000                      
Proceeds from delayed draw term loan A facility             $ 0 $ 100,000,000 $ 0          
Debt issuance costs             $ 2,266,000 $ 2,896,000            
Magnus                            
Line of Credit Facility [Line Items]                            
Number of shares pledged (in shares) | shares             39,345,151              
Percentage of shares pledged             52.60%              
Loan-to-Value ratio (as a percent)   75.00%                        
Number of grace days to cure breach   60 days                        
Minimum                            
Line of Credit Facility [Line Items]                            
Beneficial Ownership percentage for change of control             35.00%              
Term loan | Magnus                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity   ₩ 399,200,000,000         $ 358,100,000              
Term of the loan   3 years                        
Exchange rate             1,114.76              
Senior Secured Credit Facility                            
Line of Credit Facility [Line Items]                            
Contingent maximum increase to Borrowing Capacity         $ 200,000,000                  
Secured leverage ratio         2               2 2
Senior Secured Credit Facility | LIBOR | Minimum                            
Line of Credit Facility [Line Items]                            
Variable rate of interest             1.25%              
Senior Secured Credit Facility | LIBOR | Maximum                            
Line of Credit Facility [Line Items]                            
Variable rate of interest             2.00%              
Senior Secured Credit Facility | Term loan                            
Line of Credit Facility [Line Items]                            
Percentage of net cash proceeds of all non ordinary course asset sales             100.00%              
Period of reinvest net cash proceeds from day of receipt             12 months              
Percentage of net proceeds of issuance or incurrence of debt             100.00%              
Senior Secured Credit Facility | Term loan | Maximum                            
Line of Credit Facility [Line Items]                            
Period of reinvest net cash proceeds from day of receipt             18 months              
Senior Secured Credit Facility | Term loan | First and Second Year After July 28, 2016                            
Line of Credit Facility [Line Items]                            
Percentage of original principal amount payable             5.00%              
Senior Secured Credit Facility | Term loan | Third And Fourth Year After July 28, 2016                            
Line of Credit Facility [Line Items]                            
Percentage of original principal amount payable             7.50%              
Senior Secured Credit Facility | Term loan | Fifth Year After July 28, 2016                            
Line of Credit Facility [Line Items]                            
Percentage of original principal amount payable             10.00%              
Senior Secured Credit Facility | Acushnet Canada | CDOR | Minimum                            
Line of Credit Facility [Line Items]                            
Variable rate of interest             1.25%              
Senior Secured Credit Facility | Acushnet Canada | CDOR | Maximum                            
Line of Credit Facility [Line Items]                            
Variable rate of interest             2.00%              
Senior Secured Credit Facility | Letters of credit                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity         $ 20,000,000         $ 25,000,000        
Senior Secured Credit Facility | Letters of credit | Acushnet Canada                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity                     $ 35,000,000      
Senior Secured Credit Facility | Letters of credit | Acushnet Europe                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity | £                       £ 30,000,000    
Revolving credit facility                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity         $ 275,000,000                  
Commitment fee rate         0.30%                  
Proceeds from credit facility     3,000,000 $ 4,000,000                    
Weighted average interest rate               4.44%            
Additional payments, redemptions, and/or repurchases permitted by restrictive covenants pursuant to amendment $ 150,000,000.0                          
Debt issuance costs $ 400,000                          
Available borrowing capacity             $ 263,600,000              
Revolving credit facility | Magnus                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity   ₩ 10,000,000,000         $ 9,000,000              
Exchange rate             1,114.76              
Revolving credit facility | Equity Appreciation Rights                            
Line of Credit Facility [Line Items]                            
Proceeds from credit facility           $ 47,800,000                
Revolving credit facility | Minimum                            
Line of Credit Facility [Line Items]                            
Commitment fee rate             0.20%              
Revolving credit facility | Maximum                            
Line of Credit Facility [Line Items]                            
Commitment fee rate             0.35%              
Revolving credit facility | Acushnet Canada                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity                         $ 25,000,000  
Revolving credit facility | Acushnet Europe                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity | £                           £ 20,000,000
Revolving credit facility | Letters of credit                            
Line of Credit Facility [Line Items]                            
Outstanding balance             $ 11,400,000              
Swing line                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity         $ 25,000,000                  
Swing line | Federal funds rate                            
Line of Credit Facility [Line Items]                            
Variable rate of interest             0.50%              
Swing line | One Month LIBOR                            
Line of Credit Facility [Line Items]                            
Floor rate             1.00%              
Swing line | One Month LIBOR | Minimum                            
Line of Credit Facility [Line Items]                            
Leverage ratio basis spread             0.25%              
Swing line | One Month LIBOR | Maximum                            
Line of Credit Facility [Line Items]                            
Leverage ratio basis spread             1.00%              
Alternative Currency Sublimit                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity         100,000,000                  
Term loan A facility                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity         375,000,000                  
Proceeds from credit facility     $ 375,000,000                      
Delayed draw term loan A facility                            
Line of Credit Facility [Line Items]                            
Maximum borrowing capacity         $ 100,000,000                  
Commitment fee rate         0.30%                  
Delayed draw term loan A facility | Equity Appreciation Rights                            
Line of Credit Facility [Line Items]                            
Proceeds from delayed draw term loan A facility           $ 100,000,000                
Delayed draw term loan A facility | Minimum                            
Line of Credit Facility [Line Items]                            
Commitment fee rate             0.20%              
Delayed draw term loan A facility | Maximum                            
Line of Credit Facility [Line Items]                            
Commitment fee rate             0.35%              
Delayed draw term loan A facility | Term loan                            
Line of Credit Facility [Line Items]                            
Variable rate of interest             4.02% 3.32%            
v3.10.0.1
Debt and Financing Arrangements - Convertible Notes (Details) - Convertible notes - USD ($)
12 Months Ended
Dec. 31, 2016
Nov. 01, 2016
Convertible Notes    
Aggregate principal amount   $ 362,500,000
Interest expense, excluding amortization of debt issuance costs $ 22,600,000  
v3.10.0.1
Debt and Financing Arrangements - Secured Floating Rate Notes (Details)
Jul. 28, 2016
USD ($)
Secured Floating Rate Notes  
Debt Instrument [Line Items]  
Aggregate principal amount $ 375,000,000
v3.10.0.1
Debt and Financing Arrangements - Other Short-Term Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Short-term Debt [Line Items]    
Available borrowings remaining $ 920 $ 10,298
Unsecured Facilities    
Short-term Debt [Line Items]    
Weighted average interest rate 3.25% 0.73%
Available borrowings remaining $ 62,600  
v3.10.0.1
Debt and Financing Arrangements - Letters of Credit (Details) - Letters of credit - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Outstanding balance $ 15,500,000 $ 14,300,000
Line of credit secured 12,400,000 11,200,000
Maximum borrowing capacity $ 29,200,000 $ 29,200,000
v3.10.0.1
Debt and Financing Arrangements - Payments of Debt Obligations due by Period (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Payments of Debt Obligations due by Period  
2019 $ 35,625
2020 38,594
2021 310,625
2022 0
2023 0
Thereafter 0
Total $ 384,844
v3.10.0.1
Derivative Financial Instruments - Fair value of foreign exchange derivative instruments in consolidated balance sheets (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
derivative
Dec. 31, 2017
USD ($)
derivative
Foreign exchange forward | Maximum    
Derivatives, Fair Value [Line Items]    
Term of derivative contract 24 months  
Foreign exchange forward | Derivative designated as hedging    
Derivatives, Fair Value [Line Items]    
Notional amount $ 312,800 $ 278,900
Foreign exchange forward | Derivative designated as hedging | Other current assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives 6,116 4,675
Foreign exchange forward | Derivative designated as hedging | Other noncurrent assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives 1,015 562
Foreign exchange forward | Derivative designated as hedging | Accrued expenses and other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives 578 6,360
Foreign exchange forward | Derivative designated as hedging | Other noncurrent liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives $ 161 $ 276
Foreign exchange forward | Derivative not designated as hedging    
Derivatives, Fair Value [Line Items]    
Number of outstanding contracts | derivative 0 0
Interest rate swap | Derivative designated as hedging    
Derivatives, Fair Value [Line Items]    
Notional amount $ 185,000  
Number of outstanding contracts | derivative   0
Interest rate swap | Derivative designated as hedging | Accrued expenses and other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives 526 $ 0
Interest rate swap | Derivative designated as hedging | Other noncurrent liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives $ 925 $ 0
v3.10.0.1
Derivative Financial Instruments - Effect of foreign exchange derivative instruments in comprehensive loss and statement of operations (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Loss $ 6,222 $ (15,558) $ 7,014
Expected reclassification of gain (loss) recorded in accumulated other comprehensive loss into cost of goods sold during next twelve months 6,000    
Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Statement of Operations (221) (1,403) 4,277
Derivative designated as hedging | Cost of goods sold      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Statement of Operations (1,410) 1,329 5,194
Derivative designated as hedging | Selling, general and administrative expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Statement of Operations 1,665 (2,732) (917)
Derivative designated as hedging | Interest expense, net      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Statement of Operations (476) 0 0
Cash flow hedge | Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Loss 6,222 (15,558) 7,014
Foreign exchange forward | Cash flow hedge | Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Loss 8,148 (15,558) 7,014
Interest rate swap      
Derivative Instruments, Gain (Loss) [Line Items]      
Expected reclassification of gain (loss) recorded in accumulated other comprehensive loss into cost of goods sold during next twelve months (500)    
Interest rate swap | Cash flow hedge | Derivative designated as hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Loss $ (1,926) $ 0 $ 0
v3.10.0.1
Derivative Financial Instruments - Bonds with Common Stock Warrants (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 12 Months Ended
Jul. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Class of Warrant or Right [Line Items]        
Proceeds from warrants exercised   $ 0 $ 0 $ 34,503
Common Stock Warrants | Fila Korea Ltd        
Class of Warrant or Right [Line Items]        
Exercise price (in dollars per share) $ 11.11      
Proceeds from warrants exercised $ 34,500      
v3.10.0.1
Fair Value Measurements - Assets and liabilities at fair value (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Level 1    
Assets    
Total assets $ 9,637 $ 12,503
Liabilities    
Liabilities 1,222 1,866
Level 2    
Assets    
Total assets 7,131 5,237
Liabilities    
Liabilities 2,190 6,636
Level 3    
Assets    
Total assets 0 0
Liabilities    
Liabilities 0 0
Rabbi trust | Level 1 | Other current assets    
Assets    
Total assets 8,415 10,637
Rabbi trust | Level 2 | Other current assets    
Assets    
Total assets 0 0
Rabbi trust | Level 3 | Other current assets    
Assets    
Total assets 0 0
Foreign exchange derivative instruments | Level 1 | Other current assets    
Assets    
Total assets 0 0
Foreign exchange derivative instruments | Level 1 | Other noncurrent assets    
Assets    
Total assets 0 0
Foreign exchange derivative instruments | Level 1 | Accrued expenses and other liabilities    
Liabilities    
Liabilities 0 0
Foreign exchange derivative instruments | Level 1 | Other noncurrent liabilities    
Liabilities    
Liabilities 0 0
Foreign exchange derivative instruments | Level 2 | Other current assets    
Assets    
Total assets 6,116 4,675
Foreign exchange derivative instruments | Level 2 | Other noncurrent assets    
Assets    
Total assets 1,015 562
Foreign exchange derivative instruments | Level 2 | Accrued expenses and other liabilities    
Liabilities    
Liabilities 578 6,360
Foreign exchange derivative instruments | Level 2 | Other noncurrent liabilities    
Liabilities    
Liabilities 161 276
Foreign exchange derivative instruments | Level 3 | Other current assets    
Assets    
Total assets 0 0
Foreign exchange derivative instruments | Level 3 | Other noncurrent assets    
Assets    
Total assets 0 0
Foreign exchange derivative instruments | Level 3 | Accrued expenses and other liabilities    
Liabilities    
Liabilities 0 0
Foreign exchange derivative instruments | Level 3 | Other noncurrent liabilities    
Liabilities    
Liabilities 0 0
Interest rate swap derivative instrument | Level 1 | Accrued expenses and other liabilities    
Liabilities    
Liabilities 0  
Interest rate swap derivative instrument | Level 1 | Other noncurrent liabilities    
Liabilities    
Liabilities 0  
Interest rate swap derivative instrument | Level 2 | Accrued expenses and other liabilities    
Liabilities    
Liabilities 526  
Interest rate swap derivative instrument | Level 2 | Other noncurrent liabilities    
Liabilities    
Liabilities 925  
Interest rate swap derivative instrument | Level 3 | Accrued expenses and other liabilities    
Liabilities    
Liabilities 0  
Interest rate swap derivative instrument | Level 3 | Other noncurrent liabilities    
Liabilities    
Liabilities 0  
Deferred compensation program assets | Level 1 | Other noncurrent assets    
Assets    
Total assets 1,222 1,866
Deferred compensation program assets | Level 2 | Other noncurrent assets    
Assets    
Total assets 0 0
Deferred compensation program assets | Level 3 | Other noncurrent assets    
Assets    
Total assets 0 0
Deferred compensation program liabilities | Level 1 | Other noncurrent liabilities    
Liabilities    
Liabilities 1,222 1,866
Deferred compensation program liabilities | Level 2 | Other noncurrent liabilities    
Liabilities    
Liabilities 0 0
Deferred compensation program liabilities | Level 3 | Other noncurrent liabilities    
Liabilities    
Liabilities $ 0 $ 0
v3.10.0.1
Pension and Other Postretirement Benefits (Details)
12 Months Ended
Dec. 31, 2018
Minimum  
Pension and Other Postretirement Benefits  
Age limit 50 years
Maximum  
Pension and Other Postretirement Benefits  
Age limit 65 years
v3.10.0.1
Pension and Other Postretirement Benefits - Plan assets and funded status (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Pension Benefits      
Change in projected benefit obligation (PBO)      
Service cost $ 9,067 $ 9,217 $ 9,763
Interest cost 11,897 11,832 12,356
Change in plan assets      
Fair value of plan assets at beginning of year 233,860    
Fair value of plan assets at end of year 216,744 233,860  
Postretirement Benefits      
Change in projected benefit obligation (PBO)      
Projected benefit obligation at beginning of year 16,052 20,264  
Service cost 657 955 888
Interest cost 490 713 779
Actuarial (gain) loss (1,600) (5,075)  
Curtailments 0    
Settlements 0 0  
Plan amendments 0    
Participants’ contributions 378 355  
Benefit payments (1,565) (1,160)  
Foreign currency translation 0 0  
Adjustment for movement from underfunded to overfunded   0  
Projected benefit obligation at end of year 14,412 16,052 20,264
Accumulated benefit obligation at end of year 14,412 16,052  
Change in plan assets      
Fair value of plan assets at beginning of year 0 0  
Return on plan assets 0 0  
Employer contributions 1,187 805  
Participants’ contributions 378 355  
Settlements 0 0  
Benefit payments (1,565) (1,160)  
Foreign currency translation 0 0  
Adjustment for movement from underfunded to overfunded   0  
Fair value of plan assets at end of year 0 0 0
Funded status (fair value of plan assets less PBO) (14,412) (16,052)  
Underfunded | Pension Benefits      
Change in projected benefit obligation (PBO)      
Projected benefit obligation at beginning of year 316,882 284,104  
Service cost 9,067 9,217  
Interest cost 11,040 10,783  
Actuarial (gain) loss (22,436) 34,557  
Curtailments (177)    
Settlements (36,244) (20,663)  
Plan amendments 0    
Participants’ contributions 0 0  
Benefit payments (2,990) (2,719)  
Foreign currency translation (321) 1,435  
Adjustment for movement from underfunded to overfunded   168  
Projected benefit obligation at end of year 274,821 316,882 284,104
Accumulated benefit obligation at end of year 240,270 277,067  
Change in plan assets      
Fair value of plan assets at beginning of year 183,093 161,088  
Return on plan assets (11,863) 23,757  
Employer contributions 44,105 21,280  
Participants’ contributions 0 0  
Settlements (36,244) (20,663)  
Benefit payments (2,990) (2,719)  
Foreign currency translation (57) 156  
Adjustment for movement from underfunded to overfunded   194  
Fair value of plan assets at end of year 176,044 183,093 161,088
Funded status (fair value of plan assets less PBO) (98,777) (133,789)  
Overfunded | Pension Benefits      
Change in projected benefit obligation (PBO)      
Projected benefit obligation at beginning of year 35,468 39,735  
Service cost 0 0  
Interest cost 857 1,049  
Actuarial (gain) loss (5,255) (2,000)  
Curtailments 0    
Settlements (3,507) (5,172)  
Plan amendments 285    
Participants’ contributions 0 0  
Benefit payments (580) (635)  
Foreign currency translation (1,639) 2,659  
Adjustment for movement from underfunded to overfunded   (168)  
Projected benefit obligation at end of year 25,629 35,468 39,735
Accumulated benefit obligation at end of year 23,821 34,190  
Change in plan assets      
Fair value of plan assets at beginning of year 50,767 45,342  
Return on plan assets (3,846) 6,254  
Employer contributions 441 1,697  
Participants’ contributions 0 0  
Settlements (3,507) (5,172)  
Benefit payments (580) (635)  
Foreign currency translation (2,575) 3,475  
Adjustment for movement from underfunded to overfunded   (194)  
Fair value of plan assets at end of year 40,700 50,767 $ 45,342
Funded status (fair value of plan assets less PBO) $ 15,071 $ 15,299  
v3.10.0.1
Pension and Other Postretirement Benefits - Recognized on consolidated balance sheets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Assets and liabilities recognized on consolidated balance sheets:      
Accrued pension and other postretirement benefits $ (102,077) $ (130,160)  
Expected prior service cost (credit) and actuarial (gain) loss will be amortized in next fiscal year      
Expected actuarial (gain) loss will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year 100    
Pension Benefits      
Assets and liabilities recognized on consolidated balance sheets:      
Other noncurrent assets 15,071 15,299  
Accrued compensation and benefits (10,391) (18,933)  
Accrued pension and other postretirement benefits (88,386) (114,856)  
Net liability recognized (83,706) (118,490)  
Accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost:      
Net actuarial gain (loss) at beginning of year (44,892) (33,736) $ (18,374)
Actuarial gain (loss) (882) (14,554) (18,425)
Prior service cost (285) 0 0
Curtailment impact (97) 0 0
Settlement impact 4,982 2,740 1,124
Amortization of actuarial (gain) loss 1,687 804 485
Amortization of prior service cost (credit) 175 175 175
Foreign currency translation 187 (321) 1,279
Net actuarial gain (loss) at end of year (39,125) (44,892) (33,736)
Expected prior service cost (credit) and actuarial (gain) loss will be amortized in next fiscal year      
Expected prior service cost (credit) will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year 200    
Expected actuarial (gain) loss will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year 1,000    
Postretirement Benefits      
Assets and liabilities recognized on consolidated balance sheets:      
Other noncurrent assets 0 0  
Accrued compensation and benefits (721) (748)  
Accrued pension and other postretirement benefits (13,691) (15,304)  
Net liability recognized (14,412) (16,052)  
Accumulated other comprehensive income (loss) on consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost:      
Net actuarial gain (loss) at beginning of year 12,392 8,055 8,840
Actuarial gain (loss) 1,600 5,075 573
Prior service cost 0 0 (283)
Curtailment impact 0 0 0
Settlement impact 0 0 0
Amortization of actuarial (gain) loss (1,540) (601) (912)
Amortization of prior service cost (credit) (137) (137) (163)
Foreign currency translation 0 0 0
Net actuarial gain (loss) at end of year 12,315 $ 12,392 $ 8,055
Expected prior service cost (credit) and actuarial (gain) loss will be amortized in next fiscal year      
Expected prior service cost (credit) will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year (100)    
Expected actuarial (gain) loss will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in the next fiscal year $ (1,500)    
v3.10.0.1
Pension and Other Postretirement Benefits - Periodic benefit cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Pension Benefits      
Components of net periodic benefit cost      
Service cost $ 9,067 $ 9,217 $ 9,763
Interest cost 11,897 11,832 12,356
Expected return on plan assets (13,041) (12,006) (12,189)
Curtailment income (97) 0 0
Settlement expense 4,982 2,740 1,148
Amortization of net (gain) loss 1,687 804 471
Amortization of prior service cost (credit) 175 175 175
Net periodic benefit cost (credit) 14,670 12,762 11,724
Postretirement Benefits      
Components of net periodic benefit cost      
Service cost 657 955 888
Interest cost 490 713 779
Expected return on plan assets 0 0 0
Curtailment income 0 0 0
Settlement expense 0 0 0
Amortization of net (gain) loss (1,540) (601) (912)
Amortization of prior service cost (credit) (137) (137) (163)
Net periodic benefit cost (credit) $ (530) $ 930 $ 592
v3.10.0.1
Pension and Other Postretirement Benefits - Weighted average assumptions (Details)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Weighted average assumptions used to determine net cost for years ended December 31      
Expected long-term rate of return on plan assets 5.84%    
Pension Benefits      
Weighted average assumptions used to determine benefit obligations at December 31      
Discount rate 4.25% 3.62%  
Rate of compensation increase 4.00% 4.01%  
Weighted average assumptions used to determine net cost for years ended December 31      
Discount rate 3.62% 4.17% 4.16%
Expected long-term rate of return on plan assets 5.77% 5.77% 6.23%
Rate of compensation increase 4.01% 4.02% 4.07%
Postretirement Benefits      
Weighted average assumptions used to determine benefit obligations at December 31      
Discount rate 4.27% 3.61%  
Weighted average assumptions used to determine net cost for years ended December 31      
Discount rate 3.61% 4.08% 4.30%
v3.10.0.1
Pension and Other Postretirement Benefits - Healthcare cost trend rates (Details) - Postretirement Benefits Medical and Prescription Drug
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:      
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 4.50% 4.50% 4.50%
Year that the rate reaches the ultimate trend rate 2027 2024 2024
Minimum      
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:      
Healthcare cost trend rate assumed for next year 6.25% 5.50% 5.50%
Maximum      
Assumed healthcare cost trend rates used to determine benefit obligations and net cost:      
Healthcare cost trend rate assumed for next year 9.00% 8.50% 9.00%
v3.10.0.1
Pension and Other Postretirement Benefits - One-percentage-point (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
One-percentage-point change in assumed healthcare cost trend rates:    
Effect on total of service cost and interest cost, one-percentage point increase $ 72 $ 73
Effect on total of service cost and interest cost, one-percentage point decrease (64) (65)
Effect on projected benefit obligation, one-percentage point increase 632 665
Effect on projected benefit obligation, one-percentage point decrease $ (572) $ (598)
v3.10.0.1
Pension and Other Postretirement Benefits - Plan assets and type of fair value measurement (Details) - Pension Benefits - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Pension and Other Postretirement Benefits    
Fair value of plan assets $ 216,744 $ 233,860
Level 1    
Pension and Other Postretirement Benefits    
Fair value of plan assets 0 0
Level 2    
Pension and Other Postretirement Benefits    
Fair value of plan assets 1,682 1,794
Level 3    
Pension and Other Postretirement Benefits    
Fair value of plan assets 0 0
Fixed income    
Pension and Other Postretirement Benefits    
Fair value of plan assets 1,682 1,794
Fixed income | Level 1    
Pension and Other Postretirement Benefits    
Fair value of plan assets 0 0
Fixed income | Level 2    
Pension and Other Postretirement Benefits    
Fair value of plan assets 1,682 1,794
Fixed income | Level 3    
Pension and Other Postretirement Benefits    
Fair value of plan assets 0 0
Commingled funds | Measured at net asset value    
Pension and Other Postretirement Benefits    
Fair value of plan assets $ 215,062 $ 232,066
v3.10.0.1
Pension and Other Postretirement Benefits - U.S. defined benefit plan (Details)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Pension and Other Postretirement Benefits    
Future expected blended long-term rate of return on plan assets (as a percent) 5.84%  
Minimum | U.S. Defined Benefit Plan | Return-seeking investment    
Pension and Other Postretirement Benefits    
Asset allocation (as a percent) 50.00% 64.00%
Minimum | U.S. Defined Benefit Plan | Liability-hedging investment    
Pension and Other Postretirement Benefits    
Asset allocation (as a percent) 24.00% 24.00%
Maximum | U.S. Defined Benefit Plan | Return-seeking investment    
Pension and Other Postretirement Benefits    
Asset allocation (as a percent) 76.00% 76.00%
Maximum | U.S. Defined Benefit Plan | Liability-hedging investment    
Pension and Other Postretirement Benefits    
Asset allocation (as a percent) 50.00% 36.00%
v3.10.0.1
Pension and Other Postretirement Benefits - Estimated Contributions and Estimated Future Retirement Benefit Payments (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Pension Benefits  
Pension and Other Postretirement Benefits  
Estimated contribution $ 25,900
Estimated Future Retirement Benefit Payments, Year ending December 31,  
2019 28,898
2020 18,536
2021 20,064
2022 20,266
2023 23,730
Thereafter 125,482
Total 236,976
Postretirement Benefits  
Estimated Future Retirement Benefit Payments, Year ending December 31,  
2019 721
2020 849
2021 1,007
2022 1,138
2023 1,210
Thereafter 7,180
Total $ 12,105
v3.10.0.1
Pension and Other Postretirement Benefits - International Plans (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Pension and Other Postretirement Benefits      
Pension expense $ 400 $ 900 $ 1,000
Expected actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year 100    
Pension Benefits      
Pension and Other Postretirement Benefits      
Fair value of plan assets 216,744 233,860  
Expected actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year 1,000    
International Plans | Pension Benefits      
Pension and Other Postretirement Benefits      
Total projected benefit obligations 43,900 53,600  
Fair value of plan assets $ 44,000 $ 53,600  
v3.10.0.1
Pension and Other Postretirement Benefits - Defined Contribution Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Retirement Benefits [Abstract]      
Cash contributions $ 16.5 $ 13.8 $ 13.0
v3.10.0.1
Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Jan. 01, 2018
Income Tax Disclosure [Abstract]            
Federal statutory income tax rate (as a percent)     21.00%   35.00%  
Provisional income tax   $ 7,800        
Provisional tax rate effect on remeasurement   4,000        
Provisional increase of one-time transition tax liability of foreign subsidiaries   8,600        
Release of deferred tax liability previously recorded on unremitted foreign earnings   $ (4,800)        
Additional tax expense $ 10,300          
Total tax expense     $ 13,900      
Income tax benefit related to release of valuation allowance 18,400          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Increase in valuation allowance     $ (10,037) $ 3,853 $ 955  
Adjustment for new accounting standards           $ (1,501)
Retained Earnings (Deficit)            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Adjustment for new accounting standards           4,631
Accumulated Other Comprehensive Loss            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Adjustment for new accounting standards           (6,132)
Accounting Standards Update 2018-02 [Member] | Retained Earnings (Deficit)            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Adjustment for new accounting standards           4,100
Accounting Standards Update 2018-02 [Member] | Accumulated Other Comprehensive Loss            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Adjustment for new accounting standards           $ (4,100)
State tax attributes            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Increase in valuation allowance 400          
U.S. foreign tax credits arising from Japan branch operations            
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Increase in valuation allowance $ 8,000          
v3.10.0.1
Income Taxes - Components of income before income taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Components of income before income taxes:      
Domestic operations $ 54,003 $ 61,158 $ (3,995)
Foreign operations 96,301 90,518 93,217
Income before income taxes $ 150,304 $ 151,676 $ 89,222
v3.10.0.1
Income Taxes - Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]      
Federal statutory income tax rate (as a percent) 21.00%   35.00%
Reconciliation of income taxes:      
Income tax expense computed at federal statutory income tax rate $ 31,564 $ 53,086 $ 31,229
Foreign taxes, net of credits 12,138 (15,545) (1,804)
Impact of the 2017 Tax Act 10,801 12,619 0
Net adjustments for uncertain tax positions 771 508 706
State and local taxes 2,349 1,313 (525)
Equity appreciation rights 0 (765) 372
Transaction costs 0 189 3,078
Indemnified taxes 144 (115) 1,594
Fair value adjustment for common stock warrants 0 0 3,029
Valuation allowance (10,038) 90 955
Deferred charge 1,178 (1,295) 1,009
Tax credits (3,225) (3,240) (704)
Miscellaneous other, net 1,550 1,630 768
Total income tax expense $ 47,232 $ 48,475 $ 39,707
Effective income tax rate 31.40% 32.00% 44.50%
v3.10.0.1
Income Taxes - Unrecognized tax benefit (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Reconciliation of activity related to unrecognized tax benefits, excluding interest and penalties:      
Unrecognized tax benefits at beginning of year $ 11,049 $ 11,347 $ 13,120
Gross additions - prior year tax positions 0 0 1,960
Gross additions - current year tax positions 801 1,159 747
Gross reductions - prior year tax positions (91) (348) (4,457)
Gross reductions - Acquired tax positions settled with tax authorities (113) (1,241) 0
Impact of change in foreign exchange rates 0 132  
Impact of change in foreign exchange rates     (23)
Unrecognized tax benefits at end of year 11,646 11,049 11,347
Liability of interest and penalties 3,300 2,700 2,300
Income tax expense 47,232 48,475 39,707
Beam      
Reconciliation of activity related to unrecognized tax benefits, excluding interest and penalties:      
Unrecognized tax benefits, would affect the company's future effective tax rate if recognized next 12 months 5,000 4,900 5,900
Liability of interest and penalties 3,000 2,700 1,800
Income tax expense $ 300 $ 200 $ 2,200
v3.10.0.1
Income Taxes - Income Tax Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Current expense (benefit)      
United States $ 1,795 $ (906) $ 3,702
Foreign 29,896 28,109 28,156
Current income tax expense 31,691 27,203 31,858
Deferred expense (benefit)      
United States 16,222 21,189 9,489
Foreign (681) 83 (1,640)
Deferred income tax expense 15,541 21,272 7,849
Total income tax expense $ 47,232 $ 48,475 $ 39,707
v3.10.0.1
Income Taxes - Net deferred tax assets (liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Deferred tax assets        
Compensation and benefits $ 14,036 $ 14,060    
Share-based compensation 7,446 5,085    
Pension and other postretirement benefits 22,285 30,564    
Inventories 11,505 10,843    
R&D capitalization 6,449 0    
Accounts receivable 1,101 2,016    
Customer sales incentives 1,902 2,255    
Transaction costs 1,580 1,804    
Other reserves 3,987 3,255    
Interest 771 562    
Miscellaneous 1,871 1,224    
Foreign exchange derivative instruments 0 730    
Net operating loss and other tax carryforwards 80,776 103,455    
Gross deferred tax assets 153,709 175,853    
Valuation allowance (15,542) (25,579) $ (21,726) $ (20,771)
Total deferred tax assets 138,167 150,274    
Deferred tax liabilities        
Property, plant and equipment (8,057) (11,325)    
Identifiable intangible assets (54,571) (47,876)    
Foreign exchange derivative instruments (1,176) 0    
Miscellaneous (970) (954)    
Total deferred tax liabilities (64,774) (60,155)    
Net deferred tax asset $ 73,393 $ 90,119    
v3.10.0.1
Income Taxes - NOL and Tax credit carryforwards (Details) - USD ($)
$ in Millions
Dec. 31, 2018
Dec. 31, 2017
State    
NOL and Tax credit carryfowards    
Net operating loss carryforwards $ 158.9 $ 192.0
Foreign    
NOL and Tax credit carryfowards    
Tax credit carryforwards $ 58.4 $ 72.8
v3.10.0.1
Income Taxes - Changes in valuation allowance (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Changes in valuation allowance for deferred tax assets:      
Valuation allowance at beginning of year $ 25,579 $ 21,726 $ 20,771
Increases (decreases) recorded to income tax provision (10,037) 3,853 955
Valuation allowance at end of year $ 15,542 $ 25,579 $ 21,726
v3.10.0.1
Redeemable Convertible Preferred Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Nov. 01, 2016
Dec. 31, 2015
Temporary Equity [Line Items]          
Outstanding redeemable convertible preferred stock (in shares) 0 0 0   1,838,000
Dividend declared     $ 17,316    
Dividend paid $ 0 $ 0 17,316    
Redeemable Convertible Preferred Stock          
Temporary Equity [Line Items]          
Outstanding redeemable convertible preferred stock (in shares)       1,838,027  
Par value (in dollars per share)       $ 0.001  
Dividend declared     17,300    
Dividend paid     $ 17,300    
v3.10.0.1
Common Stock (Details)
3 Months Ended 7 Months Ended 12 Months Ended
Dec. 31, 2018
USD ($)
$ / shares
shares
Sep. 30, 2018
USD ($)
$ / shares
Jun. 30, 2018
USD ($)
$ / shares
Mar. 31, 2018
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
$ / shares
shares
Sep. 30, 2017
USD ($)
$ / shares
Jun. 30, 2017
USD ($)
$ / shares
Mar. 31, 2017
USD ($)
$ / shares
Dec. 31, 2018
$ / shares
shares
Dec. 31, 2018
USD ($)
vote
$ / shares
shares
Dec. 31, 2017
USD ($)
vote
$ / shares
shares
Dec. 31, 2016
USD ($)
$ / shares
Mar. 31, 2019
$ / shares
Feb. 14, 2019
USD ($)
Jun. 07, 2018
USD ($)
Equity [Abstract]                              
Common stock, shares authorized (in shares) | shares 500,000,000       500,000,000       500,000,000 500,000,000 500,000,000        
Common stock, par value (in dollars per share) | $ / shares $ 0.001       $ 0.001       $ 0.001 $ 0.001 $ 0.001        
Number of votes entitled | vote                   1 1        
Class of Stock [Line Items]                              
Issued and outstanding common stock authorized to repurchase                             $ 20,000,000
Share repurchases made under program (in shares) | shares                 0            
Dividends per Common Share (in dollars per share) | $ / shares $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.12 $ 0.12 $ 0.12 $ 0.12   $ 0.52 $ 0.48 $ 0.00      
Amount $ 9,968,000 $ 9,954,000 $ 9,917,000 $ 9,917,000 $ 9,098,000 $ 9,146,000 $ 9,149,000 $ 9,152,000   $ 39,756,000 $ 36,545,000 $ 0      
Subsequent Event                              
Class of Stock [Line Items]                              
Issued and outstanding common stock authorized to repurchase                           $ 50,000,000  
Additional issued and outstanding common stock authorized to repurchase                           $ 30,000,000  
Scenario, Forecast                              
Dividends Payable [Line Items]                              
Dividends declared (in dollars per share) | $ / shares                         $ 0.14    
v3.10.0.1
Equity Incentive Plans - Restricted Stock and Performance Stock Units (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Weighted- Average Fair Value      
Compensation expense $ 18,563 $ 15,285 $ 14,494
Omnibus Incentive 2015 Plan      
Equity Incentive Plans      
Share reserved for issuance (in shares) 7,523,536    
Shares remaining available for future grants (in shares) 5,671,859    
Omnibus Incentive 2015 Plan | RSUs and PSUs      
Number of RSUs and PSUs      
Outstanding at beginning of the period (in shares) 2,060,854 2,459,166  
Granted (in shares) 473,724 238,196  
Vested (in shares) (1,367,060) (437,188)  
Forfeited (in shares) (285,686) (199,320)  
Outstanding at end of the period (in shares) 881,832 2,060,854 2,459,166
Weighted- Average Fair Value      
Outstanding at beginning of the period (in dollars per share) $ 20.23 $ 20.40  
Granted (in dollars per share) 23.49 18.82  
Vested (in dollars per share) 20.36 20.33  
Forfeited (in dollars per share) 20.29 20.45  
Outstanding at end of the period (in dollars per share) $ 21.75 $ 20.23 $ 20.40
Omnibus Incentive 2015 Plan | RSU      
Weighted- Average Fair Value      
Shares of common stock that were not delivered (in shares) 63,490    
Common stock issued, RSU vestings (in shares) 403,538    
Shares issued to satisfy tax withholding obligations (in shares) 122,795    
Vested (in shares) $ 10,000    
Compensation expense 12,353 $ 9,318 $ 8,361
Unrecognized compensation expense $ 7,600    
Weighted average period 2 years 18 days    
Omnibus Incentive 2015 Plan | RSU | Minimum      
Equity Incentive Plans      
Term 1 year    
Omnibus Incentive 2015 Plan | RSU | Maximum      
Equity Incentive Plans      
Term 4 years    
Omnibus Incentive 2015 Plan | PSU      
Equity Incentive Plans      
Term 3 years    
Weighted- Average Fair Value      
Shares of common stock that were not delivered (in shares) 900,226    
Vested (in shares) $ 19,000    
Common stock issued, PSU vestings (in shares) 0    
Compensation expense $ 6,210 $ 5,967 $ 6,133
Omnibus Incentive 2015 Plan | PSU | Minimum      
Weighted- Average Fair Value      
Awards earned as percentage of specified compensation 0.00%    
Omnibus Incentive 2015 Plan | PSU | Maximum      
Weighted- Average Fair Value      
Awards earned as percentage of specified compensation 200.00%    
v3.10.0.1
Equity Incentive Plans - Equity Appreciation Rights (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Aggregate Intrinsic Value      
Settled   $ 0  
Compensation expense $ 18,563 $ 15,285 $ 14,494
Equity Appreciation Rights      
Equity Incentive Plans      
Liability related to EAR Plan     $ 151,500
Number of Awards      
Outstanding at beginning of the period (in shares) 0 7,614,000  
Settled (in shares)   (7,614,000)  
Outstanding at end of the period (in shares)   0 7,614,000
Weighted- Average Exercise Price      
Outstanding at beginning of the period (in dollars per share) $ 19.90  
Settled (in dollars per share)   (19.90)  
Outstanding at end of the period (in dollars per share)   $ 19.90
Aggregate Intrinsic Value      
Outstanding at beginning of the period $ 0 $ 151,511  
Outstanding at end of the period   $ 0 $ 151,511
Compensation expense     $ 6,000
v3.10.0.1
Equity Incentive Plans - Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Equity Incentive Plans      
Total compensation expense before income tax $ 18,563 $ 15,285 $ 20,541
Income tax benefit 4,398 3,158 6,481
Total compensation expense, net of tax 14,165 12,127 14,060
Cost of goods sold      
Equity Incentive Plans      
Total compensation expense before income tax 680 408 434
Selling, general and administrative expense      
Equity Incentive Plans      
Total compensation expense before income tax 16,507 13,687 18,622
Research and development      
Equity Incentive Plans      
Total compensation expense before income tax $ 1,376 $ 1,190 $ 1,485
v3.10.0.1
Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance at the beginning of the period $ (81,691)    
Adoption of new accounting standards (Notes 2 & 14)     $ (1,501)
Other comprehensive income (loss) before reclassifications (5,129) $ 1,686  
Amounts reclassified from accumulated other comprehensive loss, net of tax 6,956 1,652  
Tax benefit (expense) (3,043) 5,805  
Balance at the end of the period (89,039) (81,691)  
Foreign Currency Translation Adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance at the beginning of the period (57,711) (84,675)  
Adoption of new accounting standards (Notes 2 & 14)     (2,171)
Other comprehensive income (loss) before reclassifications (11,971) 26,964  
Amounts reclassified from accumulated other comprehensive loss, net of tax 0 0  
Tax benefit (expense) 0 0  
Balance at the end of the period (71,853) (57,711)  
Gains (Losses) on Cash Flow Derivative Instruments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance at the beginning of the period (2,280) 10,535  
Adoption of new accounting standards (Notes 2 & 14)     0
Other comprehensive income (loss) before reclassifications 6,222 (15,558)  
Amounts reclassified from accumulated other comprehensive loss, net of tax 1,886 (1,329)  
Tax benefit (expense) (1,668) 4,072  
Balance at the end of the period 4,160 (2,280)  
Gains on Available-for-Sale Securities      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance at the beginning of the period 1,721 1,536  
Adoption of new accounting standards (Notes 2 & 14)     (1,721)
Other comprehensive income (loss) before reclassifications 0 150  
Amounts reclassified from accumulated other comprehensive loss, net of tax 0 0  
Tax benefit (expense) 0 35  
Balance at the end of the period 0 1,721  
Pension and Other Postretirement Adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance at the beginning of the period (23,421) (18,230)  
Adoption of new accounting standards (Notes 2 & 14)     (2,240)
Other comprehensive income (loss) before reclassifications 620 (9,870)  
Amounts reclassified from accumulated other comprehensive loss, net of tax 5,070 2,981  
Tax benefit (expense) (1,375) 1,698  
Balance at the end of the period (21,346) (23,421)  
Accumulated Other Comprehensive Loss      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance at the beginning of the period (81,691) (90,834)  
Adoption of new accounting standards (Notes 2 & 14)     $ (6,132)
Balance at the end of the period $ (89,039) $ (81,691)  
v3.10.0.1
Interest Expense, Net and Other Expense, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Interest Expense and Other (Income) Expense, Net      
Related party interest expense $ 0 $ 0 $ 28,146
Third party interest expense 19,171 16,907 23,113
Loss on interest rate swap 476 0 0
Third party interest income (1,245) (1,198) (1,351)
Total interest expense, net 18,402 15,709 49,908
Other Nonoperating Income (Expense) [Abstract]      
Loss on fair value of common stock warrants 0 0 6,112
Indemnification (gains) losses (258) 177 (2,174)
Non-service cost component of net periodic benefit cost 4,416 3,520 1,665
Other income (529) (1,254) (2,232)
Total other expense, net $ 3,629 $ 2,443 $ 3,371
v3.10.0.1
Net Income per Common Share - Computation of basic and diluted net income per common share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Earnings Per Share [Abstract]                      
Net income attributable to Acushnet Holdings Corp. $ 11,418 $ 7,063 $ 39,907 $ 41,484 $ 18,247 $ 9,318 $ 33,016 $ 38,114 $ 99,872 $ 98,695 $ 45,012
Less: dividends earned by preferred shareholders                 0 0 (11,576)
Less: allocation of undistributed earnings to preferred shareholders                 0 0 (10,247)
Net income attributable to common shareholders - basic                 99,872 98,695 23,189
Adjustments to net income for dilutive securities                 0 0 16,475
Net income attributable to common shareholders - diluted                 $ 99,872 $ 98,695 $ 39,664
Weighted average number of common shares:                      
Basic (in shares)                 74,766,176 74,399,836 31,247,643
Diluted (in shares)                 75,472,342 74,590,999 64,323,742
Net income per common share attributable to Acushnet Holdings Corp.:                      
Basic (in dollars per share) $ 0.15 $ 0.09 $ 0.53 $ 0.56 $ 0.25 $ 0.13 $ 0.44 $ 0.51 $ 1.34 $ 1.33 $ 0.74
Diluted (in dollars per share) $ 0.15 $ 0.09 $ 0.53 $ 0.55 $ 0.24 $ 0.12 $ 0.44 $ 0.51 $ 1.32 $ 1.32 $ 0.62
v3.10.0.1
Net Income per Common Share - Calculation of diluted weighted average common shares outstanding (Details) - shares
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Series A preferred stock      
Anti-dilutive securities excluded from computation of earnings per share (in shares) 0 0 13,807,486
Warrants to purchase common stock      
Anti-dilutive securities excluded from computation of earnings per share (in shares) 0 0 1,807,171
RSUs      
Anti-dilutive securities excluded from computation of earnings per share (in shares) 13,885 360,659 0
v3.10.0.1
Segment Information - Reconciliation (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
segment
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Segment Reporting Information [Line Items]                      
Number of reportable segments | segment                 4    
Total net sales $ 343,355 $ 370,427 $ 478,138 $ 441,801 $ 351,392 $ 347,263 $ 427,988 $ 433,615 $ 1,633,721 $ 1,560,258 $ 1,572,275
Total segment operating income $ 19,599 $ 25,873 $ 64,579 $ 62,284 $ 28,282 $ 19,180 $ 57,892 $ 64,474 172,335 169,828 142,501
Reconciling items:                      
Interest expense, net                 (18,402) (15,709) (49,908)
Non-service cost component of net periodic benefit cost                 (4,416) (3,520) (1,665)
Loss on fair value of common stock warrants                 0 0 (6,112)
Income before income taxes                 150,304 151,676 89,222
Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 1,633,721 1,560,258 1,572,275
Total segment operating income                 173,093 169,248 166,798
Reconciling Items                      
Reconciling items:                      
Interest expense, net                 (18,402) (15,709) (49,908)
Non-service cost component of net periodic benefit cost                 (4,416) (3,520) (1,665)
EAR expense                 0 0 (6,047)
Loss on fair value of common stock warrants                 0 0 (6,112)
Transaction fees                 (599) (686) (16,817)
Other                 628 2,343 2,973
Titleist golf balls | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 523,967 512,041 513,899
Total segment operating income                 78,973 78,419 76,954
Titleist golf clubs | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 445,341 397,987 430,966
Total segment operating income                 45,156 32,084 51,003
Titleist golf gear | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 146,067 142,911 136,208
Total segment operating income                 15,430 16,803 12,212
FootJoy golf wear | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 439,681 437,455 433,061
Total segment operating income                 17,974 27,038 19,305
Other | Operating segments                      
Segment Reporting Information [Line Items]                      
Total net sales                 78,665 69,864 58,141
Total segment operating income                 $ 15,560 $ 14,904 $ 7,324
v3.10.0.1
Segment Information - Depreciation and Amortization (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting Information [Line Items]      
Total depreciation and amortization $ 40,496 $ 40,871 $ 40,834
Operating segments | Titleist golf balls      
Segment Reporting Information [Line Items]      
Total depreciation and amortization 24,155 25,545 26,104
Operating segments | Titleist golf clubs      
Segment Reporting Information [Line Items]      
Total depreciation and amortization 7,408 7,233 7,021
Operating segments | Titleist golf gear      
Segment Reporting Information [Line Items]      
Total depreciation and amortization 1,531 1,425 1,250
Operating segments | FootJoy golf wear      
Segment Reporting Information [Line Items]      
Total depreciation and amortization 6,731 6,058 5,759
Operating segments | Other      
Segment Reporting Information [Line Items]      
Total depreciation and amortization $ 671 $ 610 $ 700
v3.10.0.1
Segment Information - Geographical areas (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total net sales $ 1,633,721 $ 1,560,258 $ 1,572,275
Total long-lived assets 228,388 228,922  
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total net sales 826,111 789,879 804,516
Total long-lived assets 146,596 148,678  
EMEA      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total net sales 219,803 205,200 210,088
Total long-lived assets 9,472 9,669  
Japan      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total net sales 199,107 201,264 219,021
Total long-lived assets 764 770  
Korea      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total net sales 221,146 200,394 175,956
Total long-lived assets 5,682 3,782  
Rest of world      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total net sales 167,554 163,521 $ 162,694
Total long-lived assets 65,874 66,023  
Thailand      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total long-lived assets $ 52,200 $ 53,800  
v3.10.0.1
Business Combinations (Details) - PG Professional Golf
$ in Millions
Oct. 01, 2018
USD ($)
Business Acquisition [Line Items]  
Percent of certain assets and liabilities acquired 80.00%
Purchase price $ 14.4
v3.10.0.1
Commitments and Contingencies - Purchase Commitments (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2019 $ 151,463
2020 18,804
2021 6,113
2022 1,850
2023 1,391
Thereafter $ 4,804
v3.10.0.1
Commitments and Contingencies - Lease Commitments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]      
Noncancelable lease term 1 year    
Subsequent period over which lease may be renewed annually 5 years    
Original cost (in percentage) 20.00%    
Deprecated value (in percentage) 20.00%    
Future minimum rental payments under noncancelable operating lease      
2019 $ 13,119    
2020 11,053    
2021 7,984    
2022 5,345    
2023 3,133    
Thereafter 13,852    
Total minimum rental payments 54,486    
Total rental expense for all operating leases $ 15,700 $ 16,300 $ 16,500
v3.10.0.1
Commitments and Contingencies - Contingencies (Details) - USD ($)
$ in Millions
Dec. 31, 2018
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]    
Estimate of receivable for indemnification $ 8.9 $ 8.7
v3.10.0.1
Unaudited Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]                      
Net sales $ 343,355 $ 370,427 $ 478,138 $ 441,801 $ 351,392 $ 347,263 $ 427,988 $ 433,615 $ 1,633,721 $ 1,560,258 $ 1,572,275
Gross profit 174,929 188,938 250,810 227,674 179,372 173,104 222,966 226,415 842,351 801,857 799,000
Income from operations 19,599 25,873 64,579 62,284 28,282 19,180 57,892 64,474 172,335 169,828 142,501
Net income 12,264 7,349 40,369 43,090 18,899 10,634 34,038 39,630 103,072 103,201 49,515
Net income attributable to Acushnet Holdings Corp. $ 11,418 $ 7,063 $ 39,907 $ 41,484 $ 18,247 $ 9,318 $ 33,016 $ 38,114 $ 99,872 $ 98,695 $ 45,012
Net income per common share attributable to Acushnet Holdings Corp.:                      
Basic (in dollars per share) $ 0.15 $ 0.09 $ 0.53 $ 0.56 $ 0.25 $ 0.13 $ 0.44 $ 0.51 $ 1.34 $ 1.33 $ 0.74
Diluted (in dollars per share) $ 0.15 $ 0.09 $ 0.53 $ 0.55 $ 0.24 $ 0.12 $ 0.44 $ 0.51 $ 1.32 $ 1.32 $ 0.62
Decrease in income tax expense                 $ (47,232) $ (48,475) $ (39,707)
Restatement Adjustment                      
Error Corrections and Prior Period Adjustments Restatement [Line Items]                      
Net income         $ 6,600         $ 6,600  
Net income per common share attributable to Acushnet Holdings Corp.:                      
Basic (in dollars per share)         $ 0.09         $ 0.09  
Diluted (in dollars per share)         $ 0.08         $ 0.09  
Decrease in income tax expense         $ 6,600         $ 6,600  
v3.10.0.1
Label Element Value
Parent [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ (1,501,000)